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BROKERS: GET YOUR COMMISSION AGREEMENTS IN WRITING!

Tim Kowal     April 24, 2020

Last month's decision in Westside Estate Agency, Inc. v. Randall (Cal. Ct. App. - Dec. 1, 2016) began its opinion saying:

"We are all familiar with the phrase, "caveat emptor": Buyer beware. This case deals with its less renowned cousin, "caveat sectorem": Broker beware."

Section 1624 of the Civil Code says that a real estate broker can only be a broker for someone - e.g., get a commission - if there's an agreement in writing. The broker here didn't get a signed agreement authorizing his status as a broker, but instead relied upon an alleged oral agreement.

That's not good enough.

Which means he loses out on a $925,000 commission on a $45 million sale.

Follow the statute. Get the agreement in writing.

h/t Prof. Shaun Martin

Tim Kowal is an appellate specialist certified by the California State Bar Board of Legal Specialization. Tim helps trial attorneys and clients win their cases and avoid error on appeal. He co-hosts the Cal. Appellate Law Podcast at CALpodcast.com, and publishes summaries of cases and appellate tips for trial attorneys. Contact Tim at [email protected] or (949) 676-9989.
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