Failure to Obtain Proper Value
A seller’s broker negotiated a deal on behalf of a building owner for approximately $4 million for the sale of a commercial building. The seller agreed, however, refused to close the transaction. The seller believed the sales price was too low, even though they had already agreed to sell the property. The buyer sued the seller for specific performance and after 3 ½ years the courts compelled the owner to sell the piece of property. At the new closing the broker requested they be paid their commissions on the sale and the seller refused as they felt they had not received the proper value originally. To make matters worse, the seller now believed the property was now worth $8 million. The seller sued the broker for $4 million in lost appreciation, plus legal, plus punitives, etc.