Condo Developer Seeks Return of Commissions on Abandoned Deals
A Florida condo developer has filed 16 lawsuits against brokers that sold its luxury units, seeking the return of commissions on deals that never closed.
The suit by Related Group of Florida says the commissions range from $15,000 to $90,000 for the condos, abandoned in most cases when the condo values dropped, the Wall Street Journal reports (sub. req.). The commissions had been paid up-front as competition heated up for buyers.
The brokers maintain they shouldn’t be responsible for a down market that was the result of developers building too many condos. Some brokers say it will be nearly impossible to recover the money, since much of it was paid long ago to individuals who have left their companies.
Experts predicted similar suits would be filed as more condo contracts are abandoned. The ditched deals could also spur suits by buyers who claim they should get their down payments back because the condos weren’t completed as promised.
