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The Holzmans signed an exclusive listing agreement with the Blum real estate brokerage firm. The contract provided that the Holzmans had an obligation to pay a commission ?oif they enter into a written agreement to sell the property to any person during the term of this exclusive listing agreement.?? The Holzmans entered into a written agreement to sell their house for $715,000 to the Noravians. On the advice of their attorney, the Holzmans included a default provision in this contract stating that in the event of default by the Holzmans, the Noraviansâ only remedy would be a refund of their deposit. Subsequently, the Sterns offered $850,000 for the property and the Holzmans canceled their contract with the Noravians and returned their deposit. After the exclusive listing period expired, the Holzmans executed a contract to sell their property to the Sterns at the offered price of $850,000â with the contract calling for the Holzmans to pay half the real estate fee to Blum and half to a cooperating broker. Blum was paid this fee of $21,500.
Blum brought suit against the Holzmans seeking the full commission for the Noravian contract under the exclusive listing agreement. Did Blum have a legal obligation or ethical duty to advise the Holzmans when considering the Sternsâ offer that he believed they were obligated to him for the full commission under the Novarian contract? Decide. [Holzman v Blum, 726 A2d 818 (Md App)]