Real estate salesperson succeeds in mission to collect commission

By: Erica Stutman

A.R.S. § 32-2152 allows a real estate broker or salesperson to file a court action to collect earned compensation if he was a “qualified licensed broker or salesperson at the time the claim arose.”  In Focus Point Prop., LLC v. Johnson, 689 Ariz. Adv. Rep. 4 (June 19, 2014), plaintiff Cleo Johnson tested the meaning of a “qualified” licensee, arguing that her salesperson was not entitled to his commission because his license could have been revoked at the time he performed his services.

In 2009, Johnson, trustee of a trust, hired Jeff Kantor from Focus Point Properties to sell a commercial property owned by the trust and also to assist with rehabilitation activities and leasing.  … Read More »

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Commercial Real Estate Broker Liens

Arizona, by statute, allows a commercial real estate broker in certain limited circumstances to record a lien against the owner’s real property which is the subject of the commission agreement, in order to protect the broker’s entitlement to their commission.  See A.R.S. §§ 33-1071 – 1076.  The lien rights apply only to commercial real property and residential property with five or more residential units.  The lien rights apply only to leasing and rental transactions, not sales.  The lien is enforceable by a foreclosure action the same as a mortgage.    The statutes identify very specific protocols that need to be followed.  For example, in order to take advantage of such lien rights, such lien rights must be referenced in the pertinent brokerage/listing agreement between the broker and the owner of the real property; a preliminary notice of intent to lien must be recorded no later than 15 days before the date the tenant takes possession; and in certain circumstances a notice of lien must be filed within 90 days after the tenant takes possession. … Read More »

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Sign those Real Estate Agreements!

By: Bobby Kethcart

The Statute of Frauds is a BIG deal in real estate transactions and litigation. (This is our second post about it already…) We know it requires (most) agreements related to real estate to be in writing—agreements for the sale of an interest in real property, agreements for a lease of longer than one year, agreements authorizing or employing a broker or agent to buy or sell real property for compensation or a commission, and even some agreements to pay referral commissions if they can’t be performed in less than a year. We also know that the Statute of Frauds only requires the written agreement to be signed “by the party to be charged,” i.e.Read More »

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Broker Beware?

By: Erica Stutman

While oral contracts are often enforceable, certain categories of contracts must be documented in a signed writing or an action for breach of the contract will be barred by the statute of frauds.  See A.R.S. 44-101 for Arizona’s statute of frauds.  The statute of frauds plays an important role in real estate transactions, as agreements for the sale of an interest in real property and for leases longer than one year fall within the statute, as do most real estate broker or agent agreements.  A less obvious category that may affect a real estate agent or broker’s ability to collect commissions is an agreement which is not to be performed within one year from the date the agreement is made.… Read More »

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