Breach of Contract-Next Steps for Litigation?

[ChrisCapelli19]

California

We executed a property management, and listing agreement with the owner of an apartment building. The purpose of the property management agreement was to get the apartment building occupied (there were 8 vacancies, and two tenants that needed to be evicted) so we could get the highest sale price. The building is now ready for sale and the Seller will not let us put the property on the market and said she wants to get an appraisal and doesn’t know if he wants to sell it with us. He screams at us every time we talk about it. He is old and seems out of it mentally at times but he is sharp as a tack when reviewing management statements.

What steps should I take to enforce the listing agreement? Should I just put the property on the market (mls, internet sites, etc?)? Start sending in offers? I’ve sent her a letter stating she’s breached our agreement and it was delivered via certified mail. I am just not sure what else to do and the listing expires August 1st.

Any advice is appreciated.

 

[quincy]

California

We executed a property management, and listing agreement with the owner of an apartment building. The purpose of the property management agreement was to get the apartment building occupied (there were 8 vacancies, and two tenants that needed to be evicted) so we could get the highest sale price. The building is now ready for sale and the Seller will not let us put the property on the market and said she wants to get an appraisal and doesn’t know if he wants to sell it with us. He screams at us every time we talk about it. He is old and seems out of it mentally at times but he is sharp as a tack when reviewing management statements.

What steps should I take to enforce the listing agreement? Should I just put the property on the market (mls, internet sites, etc?)? Start sending in offers? I’ve sent her a letter stating she’s breached our agreement and it was delivered via certified mail. I am just not sure what else to do and the listing expires August 1st.

Any advice is appreciated.

There seems to be some gender confusion in your post.

If a property owner decides to withdraw his/her property from the market, for whatever reason, s/he is allowed to do this.

Your agreement should have addressed this.

 

[justalayman]

I’ve sent her a letter stating she’s breached our agreement and it was delivered via certified mail. I am just not sure what else to do and the listing expires August 1st.
.

what is the basis for your claim he or she breached the contract?

 

[latigo]

California

We executed a property management, and listing agreement with the owner of an apartment building. The purpose of the property management agreement was to get the apartment building occupied (there were 8 vacancies, and two tenants that needed to be evicted) so we could get the highest sale price. The building is now ready for sale and the Seller will not let us put the property on the market and said she wants to get an appraisal and doesn’t know if he wants to sell it with us. He screams at us every time we talk about it. He is old and seems out of it mentally at times but he is sharp as a tack when reviewing management statements.

What steps should I take to enforce the listing agreement? Should I just put the property on the market (mls, internet sites, etc?)? Start sending in offers? I’ve sent her a letter stating she’s breached our agreement and it was delivered via certified mail. I am just not sure what else to do and the listing expires August 1st.

Any advice is appreciated.

Maybe yes and maybe no. But not under a theory of breach of contract!

The settled law in California is such that "any right to compensation asserted by a real estate broker must be found within the four corners of his employment contract." *

Consequently if your contract with the owner was similar to that drafted by the California Real Estate Association, entitled "Exclusive Authorization and Right to Sell", giving you the exclusive and irrevocable right to sell the property for a given period.....

And it contains the standard "withdrawal from sale clause" by which event you were to be compensated in a stated amount.....

Then and only then would you be entitled to compensation from the owner. (Any claim of quantum meruit pertaining to the listing would not be available to you. But possibly with regard to the efforts in fulfilling the management agreement.)

If those terms are stated, in no way would your claim be based upon a breach of contract. Simply because the owner would have thereby reserved the "conditional right" to withdraw the property from the market.

But yes, you would be enforcing the listing agreement to the state extent.

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[* ] See: Blank v. Borden, Cal Supreme Court 11 Cal. 3d 963; (Crane v. McCormick (1891) 92 Cal. 176, 182 [28 P. 222]; see also Kimmell v. Skelly (1900) 130 Cal. 555, 560 [62 P. 1067]; see generally, 1 Miller & Starr, Current Law of Cal. Real Estate (1965) pp. 228-247.)