While looking for investment property such as a condo, house, coop is there any legal relationship that is created when using the services of let's say multiple real estate agents if no written contract agreement is entered into? If one agent emails you a list properties and one does not actually visit the property and the second broker introduces you to the same property which you later purchase is there any legal issues? Would it matter if it is a multiple listing? What if you never see the property that the broker sent to you but later you see the property through an adevertment by the owner?
Country relating to Question: United States
It is well settled that "[a] real estate broker is entitled to a commission if the broker is the procuring cause of the sale" ( Sholom & Zuckerbrot Realty Corp. v Citibank, 205 A.D.2d 336, 338, 613 N.Y.S.2d 588; see, Ryan v Bettiol, 211 A.D.2d 844, 845-846, 620 N.Y.S.2d 625; Salzano v Pellillo, 4 A.D.2d 789, 790, 165 N.Y.S.2d 550) which, in turn, requires "a direct and proximate link, as distinguished from one that is indirect and remote, between the bare introduction [of the buyer and seller] and the consummation [of the sale]" ( Greene v Hellman, 51 N.Y.2d 197, 206, 433 N.Y.S.2d 75, 412 N.E.2d 1301). Stated differently, "'the essential feature of a broker's employment is to bring the parties together in an amicable frame of mind, with an attitude toward each other and toward the transaction in hand which permits their working out the terms of their agreement * * *'" ( Salzano v Pellillo, (supra) , at 790, quoting Baird v Krancer, 138 Misc 360, 362-363, 246 N.Y.S. 85; see, Sholom & Zuckerbrot Realty Corp. v Citibank, (supra) , at 338-339). It therefore necessarily follows that although the broker need not be present for the actual negotiations (see, Coldwell Banker Residential Real Estate v Berner, 202 A.D.2d 949, 952, 609 N.Y.S.2d 948; Spalt v Lager Assocs., 177 A.D.2d 879, 882, 576 N.Y.S.2d 906; Salzano v Pellillo, (supra) , at 790), he or she must do more than simply introduce the parties (see, ERA Joseph Green Real Estate v Daubert, 186 A.D.2d 885, 887, 588 N.Y.S.2d 922), call the property in question to the attention of a potential buyer (see, Lanstar Intl. Realty v New York News, 206 A.D.2d 411, 412, 614 N.Y.S.2d 438; Manning v Briar Hall N., 151 A.D.2d 650, 651, 542 N.Y.S.2d 711; Gabrielli v Cornazzani, 135 A.D.2d 340, 342, 525 N.Y.S.2d 71) or provide that buyer with limited information (see, Brown & Son Realty v Greenberg, 195 A.D.2d 583, 584, 601 N.Y.S.2d 7).Based on the above-referenced background law, you ask:
While looking for investment property such as a condo, house, coop is there any legal relationship that is created when using the services of let's say multiple real estate agents if no written contract agreement is entered into?
A: If the agent puts the buyer and seller together with the intent to negotiate, and the negotiation results in a sale, then the agent is entitled to a commission, regardless of any written contract between the agent and the seller or buyer. This is the "procuring cause doctrine."
If one agent emails you a list properties and one does not actually visit the property and the second broker introduces you to the same property which you later purchase is there any legal issues?
Would it matter if it is a multiple listing?
A: It may matter as between the brokers, because they agree to certain contractual provisions as part of their membership in the MLS. But, this doesn't bind the buyer or seller.
What if you never see the property that the broker sent to you but later you see the property through an adevertment by the owner?
Attorney and Real Estate broker -- Retired (mostly)
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