Disclosure obligation regarding exclusivity
- Buying an apartment in Israel
- The real estate broker
Reuven is a successful and talented agent.
One day a buyer came to him to help him find a proper apartment Although Reuven found an apartment, with the help of his friend Shimon, a realtor, the landlord requested that he sell the condo for him through exclusive mediation.
Reuven did not disclose to his client that the apartment was marketed exclusively by the seller’s realtor.
Who’s going to get a brokerage fee, both realtors or none of them?
In such a matter, he decided in the court and ruled that the buyer’s realtor had failed when he did not disclose to him in advance that the apartment was being marketed exclusively by an agent on behalf of the seller.
Since the buyer was forced to contact the seller’s realtor, the buyer’s realtor was not the “effective factor” in marketing the apartment, and therefore he is not entitled to a brokerage fee in exchange for his troubles.