Two Florida real estate brokers verbally agree that Broker A will pay Broker B a 25% referral fee for a commercial transaction. Broker B refers a client who purchases a $2 million property. When Broker A refuses to pay the referral fee, claiming no written agreement exists, what is Broker B's legal position under Florida law?
Correct Answer
A) Broker B cannot collect because F.S. 475 requires written brokerage agreements
Correct: A - F.S. 475.42(1)(d) requires agreements for commission splits between brokers to be in writing to be enforceable. This is a specific requirement beyond the general Statute of Frauds. Why not B: The Statute of Frauds does apply, and F.S. 475 has specific requirements. Why not C: Quantum meruit doesn't override statutory requirements for written agreements. Why not D: Florida law specifically requires written agreements between brokers for commission splits.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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Previous Question
Mark agrees to buy Jennifer's Florida home for $350,000. The contract states that Mark will pay $1,000 earnest money, but he never actually deposits it. Jennifer later tries to cancel the contract claiming failure of consideration. What is the likely outcome?
Next Question
During negotiations for a Florida oceanfront property, the seller's agent tells the buyer that the property has 'about 150 feet of ocean frontage.' The contract doesn't specify the frontage amount. After closing, the buyer discovers the property has only 120 feet of frontage. What is the buyer's most likely remedy under Florida law?