Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.
1) Are you asking about a Chapter 7 or a Chapter 11 Bankruptcy?
2) Are you asking about a commission that was earned more or less than 180 days before the Bankruptcy was filed?
The commission agreement was signed on July 8. It was prepared by my lawyer for my real estate company , but it is an agreement with his wife's brokerage. Without telling me, he voided the entire exclusions clause and substituted specific requirements that I pay commission on all transactions, including seven prospects that I had been working on for months. I completely trusted him and failed to read the agreement until after I signed it. When confronted about the conflict, he claimed that the commission agreement would even survive a bankruptcy. While disappointed and heartbroken (this guy was a close friend), I am now preparing to fight back.
While I don't want to file, I'm just wondering if he was bluffing or if real estate commission agreements do survive. I have already informed him
of my intention to cancel the listing and pay any costs incurred by the brokerage, but they may want to fight over it even if I don't
No commissions have been earned as yet.
Thank you for your response.
Last question - was the agreement between yourself personally and the brokerage firm, or between your company and the brokerage firm?
The agreement was between one of my subsidiary companies and the brokerage. The investor I am pursuing is
talking about buying equity in the parent company, not the sub that owns the real estate. I suspect that will be my way out.
There is no personal guarantee
Thank you again for your response.
As I am not familiar enough with business Bankruptcies to be able to help you, I will have to opt out of this question, so that someone else can help you further.
As I am not familiar enough with business Bankruptcies, I will have to opt out of this question, so that someone else can help you further.
My expert wasn't familiar with business bankruptcy and said he would have to defer to someone else in your cadre of experts. I have not yet
answered the question and would appreciate a response from someone else in your circle.
That's very helpful. I appreciate the thoroughness of your reply. BK is not my preference, but I can't tell yet if the broker is going to fight to retain the agreement or if he will agree to a modification that settles the disagreement. Many thanks for the insight.
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