What Is True About Brokerage Agreements In Michigan

For more information on what this decision means for you, and for your other brokerage questions, please contact Mark Plaza, an attorney with Maddin Hauser of Southfield, Michigan, at 248-208-0710 or mplaza@maddinhauser.com. Second, if an escrow account is fully funded at the time of closing to cover your privilege, you will need to release your privilege. It does not matter if your actual losses are greater than those indicated in the lien. The requirements of the creBLA are very clear. By filing a legal dispute to assert a lien in these circumstances, you may be exposed if a buyer tries to recover for denying the property against you. The court noted that “[t]he purpose of CREBLA was only to protect the broker`s right to collect the commission described in the brokerage contract, and not to allow the broker to punish the seller for avoiding his contractual commitments.” For this reason, the court held that: The plaintiff subsequently violated the clear instruction of the law to release his lien once the buyer and seller had funded an escrow account in an amount sufficient to cover the broker`s claim. The plaintiff`s persistent refusal to release the lien resulted in an invalid cloud over the buyer`s title. As another old saying goes, “An ounce of prevention is worth a pound of remedy.” Ultimately, the decision made in this lawsuit doesn`t mean the end for commercial real estate agents, but it does highlight the importance of knowing your rights under the law and taking the kind of steps necessary before filing a lawsuit to ensure your interests are fully protected. In court filings, the broker asserted that the seller (and later an insolvency administrator appointed for the seller) entered into “secret negotiations” with Mr.C`s Lake Orion, L.L.C. (the “Buyer”) without the broker`s participation. The seller/consignee and buyer then agreed on the terms of an lease with an option to purchase, which the buyer immediately exercised for $1.2 million. When the broker learned of the planned sale, he registered a brokerage privilege of 5% of the purchase price ($60,000) as permitted by CREBLA.

According to CREBLA, the lien expires as soon as an escrow account is in an account that is needed to cover the lien, and the real estate agent provides a release from the lien. This forced the broker to release his privilege. So, do two wrongs do a good? Did the seller have the right to violate the terms of the exclusivity agreement? No. But did this violation give the broker the right to pursue a foreclosure lawsuit against the buyer after he had to create a fully funded escrow account? Neither. The District Court unassy dismissed the broker`s lawsuit and issued the buyer with a summary injunction in favor of his action to issue it. .