Question

Case Study:

Lloyd and Edna Evans desired to sell their property. They employed the services of Fleming Realty and Insurance, Inc., a corporation engaged in providing real estate brokerage services. These parties entered into a listing agreement containing the usual provision that required the Evans to pay a commission if Fleming obtained a ready, willing and able purchaser.

The broker located Neal Hasselbach, who signed a standard purchase agreement offering to buy the Evans’ property on the terms specified in the listing agreement. In essence, in this document Mr. Hasselbach offered to pay the asking price to the Evans. Based on their fears that Mr. Hasselbach was not financially able to purchase their property, Mr. and Mrs. Evans refused to sign a sales contract with this buyer.

Questions:

1. Did Fleming Realty and Insurance procure a ready, willing and able buyer? Explain.

2. Was it therefore, entitled to the agreed-upon commission?

3. If you were Mr. Hasselbach, what would you do at this point or do you have any recourse?

Answer 1

1. Did Fleming Realty and Insurance procure a ready, willing and able buyer? Explain. - Yes, since Mr. Hasselbach signed the purchase agreement to buy the Evan's property on the terms specified in the listing agreement at the price demanded by Evans.
2. Was it therefore, entitled to the agreed-upon commission? - Yes, because Fleming Realty and Insurance has provided a ready, willing and able buyer to Evans in line with the agreement.
3. If you were Mr. Hasselbach, what would you do at this point or do you have any recourse? - I would first determine the reason behind Mr. and Mrs, Evans refusing to sign the sales contract. On realizing they have doubt over my financial stability, I would produce documents which prove the same and help resolve any conflicting ideas or notions which the two sellers may have. If this too failed, then I would proceed with searching another property of choice.