Since the highest court has upheld the lower court's decision, the ruling has profound signification, not only locally, but for the entire state of New York. (Photo: twitter.com)
A case regarding a lawsuit brought by Sotheby's International Realty against Donald Deutsch over a commission for the sale of Deutsch's property located in East Hampton reached a final solution on June 28, 2016, when New York's highest court rejected Deutsch's appeal for a reversal of the trial court's decision arrived at on October 21, 2014. The Appellate Division of the Supreme Court had earlier denied Deutsch's appeal on March 24, 2016. Since the highest court has upheld the lower court's decision, the ruling has profound signification, not only locally, but for the entire state of New York.
The result is that Deutsch must pay $1,207,360, plus interest from October 8, 2010. But it also supports a long-held common law principle, that in order for a real estate broker to have earned a commission, they do not have to have a written agreement, as long as they can demonstrate by providing evidence that their actions created a contract for the services, and that those actions led to the sale and purchase of the property. The court also established that when the amount of commission earned is unclear, it will look to what the customary compensation is for the service provided. This case should dispel the commonly held view that a real estate broker who can establish that he has or she has met all of the common law requirements to be entitled to compensation for his labors, has no chance to prevail in a court of law. What it also demonstrates is that the broker has to back up the claim by showing that they have met all these requirements. There are many court decisions that illustrate the points made in this case, but the fact that it happened in the Hamptons real estate market gives it special significance.
In its decision, the Court stated the following: "A real estate broker is entitled to recover a brokerage commission when it establishes: (1) that he or she is duly licensed, (2) that he or she had a contract, express or implied, with the party to be charged with paying the commission, and (3) that he or she was the procuring cause of the sale."
What I have learned anecdotally is that brokers are increasingly less likely to walk away from making a claim for a commission when they feel they are unreasonably being denied payment. Most of the large firms have access to litigators and are encouraged to avail themselves of their services. The cost of doing business and the loss of commissions has encouraged real estate brokers to pursue their rights, especially given the prices that sellers are receiving for the sales of their properties.
John is a St. John's University graduate, licensed Real Estate broker, DOS Certified Instructor, lecturer, teaches real estate license classes at Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. He previously taught at LIU and NYU. www.johnaviteritti.com
Southampton Masonry has been serving Long Island's masonry and tile needs since 1975. Delivering quality products from Manhattan to Montauk for over three decades. The company's continued success is due primarily to their number one priority: customer satisfaction, with a promise of prompt and courteous service from the professional, knowledgeable staff.
Southampton Masonry has the largest inventory on the east end. As direct importers they can offer a large variety of the finest quality products at the most competitive pricing for both your interior and exterior projects.
Paul Guillo And Chris Hall
Two Of The Most Respected Names In The Community
Together, they are partners in CP Complete. They bring their years of experience
and integrity to creating and renovating luxury backyards.
Hamptons luxury real estate specialist for 34 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant.
Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.
Southrifty Drug is a small, neighborhood pharmacy with limited shelf space, and we have to be very selective about which over-the-counter items we carry. As a result you'll find a no nonsense concentration of very effective, high quality and useful products on our shelves. In this new section, we feature a number of these products that we feel are especially worthy of your consideration.
Burner Law Group, P.C. are full service elder law attorneys concentrating in the areas of Estate Planning, Trust and Estate Administration and Litigation, Special Needs Planning, Guardianship and Elder Law. Offices in East Setauket‚ NY, Westhampton Beach, NY, and New York, NY.
Our menu focuses on seafood and Greek dishes such as salt baked fish, seafood pasta and Mediterranean mezze. Our wine list has been awarded The Award of Excellence from Wine Spectator and boasts the largest selection of rosé in the Hamptons. The name Calissa is derived from the brightest constellation in the summer sky.Our sister restaurants in New York are Amali and Bar Marseille, opening 2020 in the Rockaways. Calissa offers private dining spaces for groups from 10 to 300 people. To plan your next wedding, corporate event or gathering, please email email@example.com. 1020 MONTAUK HIGHWAY, WATER MILL
Suburban Propane has been serving the energy needs for home owners and business in the Hampton’s for decades. We offer friendly service by local professionals you know and trust, plus the peace of mind that comes from knowing we are among the leaders in the industry for safety.