What is a binding contract for purposes of brokerage fee obligation?
- Buying an apartment in Israel
- The real estate broker
If so, what document will the parties’ signature be a coned from the agent in the brokerage fees? Of course, the parties’ engagement through the signing of a sales agreement entitles the agent to the brokerage fees, but what is the situation in the parties’ signing of a memorandum of office? And what if the parties sign a contract with the terms of the sing-along? What if an agreement was signed but terminated with the parties’ consent?
The term “binding agreement” caused difficulties in the ruling in cases where the contract was ultimately not executed.
In the normal state of things, the purpose of the contract in the brokerage transaction between the buyer and the realtor is to bring about the execution of a finished trade in the property.
Therefore, if a conditional transaction was signed, and the condition did not take place, it can be said that this goal was not fully achieved, but only conditionally, and therefore did not arise, until the terms of the agent’s right to wages were met.”
According to the Law, parties may sign an agreement with the terms of the singular:
“A contract may depend on the condition… Or he’ll be a condition of his life…”
There are N.Y. types of sing-through conditions.
1) A condition underlying the contract will take effect.
2) Another type is a contract with a termination condition.
Ostensibly, a suspended contract does not crystallize into a contract that requires brokerage fees. However, the court emphasizes achieving the purpose of the mediation, as stipulated in the agreement between the realtor and the client, and not necessarily whether it is a “property sale transaction” according to the Land Law and the Land Tax Action Law.