Trying to enforce an agreement pertaining to the sale of real estate

[nickjames]

What is the name of your state? TX

I am an attorney who does mainly IP work so I have very little knowledge of real estate. I am trying to help out a client (friend of mine) with the following situation: He and his boyfriend (yes, they are both "he") were living together for many years. The both lived in a house bought by this boyfriend. They decided to break up and there were email exchanges whereby the boyfriend promised to take care of my client financially upon breaking up. More specifically, the boyfriend promised a certain sum of money ($30K) from the sale of his house. The sum to be paid to my client was to be made up of two components: (1) $25K in consideration for "time and toil" brought into the house and the relationship (arbitrary number, but promised nonetheless), and (2) approx. $5K commission from the sale of that home (my client is a real estate agent and would be the one to list the house). Like I stated before, there are emails that I would consider as forming a contract (I still need to see if these satisfy the statute of frauds). Of course, the boyfriend backed out, sold the house with another agent, and is refusing to pay my friend the $30K. A lawyer responded to my demand letter with the threat that if my client attempted to seek this money he would be placing his real estate license in jeopardy and that he should think twice about suing. I am writing asking for your thoughts on whether this is an empty threat or if there is some merit to it. I cannot fathom why pursuing such a claim would place a license in jeopardy! I feel that going after the $25K is worthwhile b/c we have a contract to base it on. However, could I still in good faith pursue the lost commission since the boyfriend used another agent when he promised my guy could sell the house? If I did pursue this would I really be placing my client's license in peril? Sorry for the long post but it seems as if this board has knowledgable people that would provide some good insight. Thank you.

 

[nextwife]

If your client was not ON TITLE, technically, he was entitled to NOTHING from the sale. Was there actually a CONTRACT between them for your client to get the money? Say, in exchange for X property?

 

[garrula lingua]

I am unaware of any 'time & toil' basis for a lawsuit. That's simply part of every relationship.

The palimony lawsuits that prevailed, involved assistance in building & maintaining the other partner's business ... the courts stated that, otherwise, it was a contract for prostitution and could not be upheld.

What was the 'consideration' that your client provided, to support his claim to these monies ?

Read over the palimony lawsuits: Texas' equivalent to California's Marvin, et al.

 

[nickjames]

My client actually did lots of work in remodeling the house. Perhaps this could be considered past consideration b/c at the time he did not expect payment. Is there any way around that? Perhaps justifiable reliance on this promise to pay. What about some kind of an equitable argument? In any event, what do you think the other lawyer is referring to in jeopardizing his real estate license?

 

[PghREA]

The 5,000 in commission is a non-issue since the ex boyfriend never listed the home with
your client. The listing and the commission earned when the home is sold belongs to the listing agency and the commission to the listing and selling agents is paid by the listing broker. If your client did not list or sell the home, how could he be entitled to a commission. Since, he is not entitled to a commission and was not involved with the sale of the house in any way, why would his real estate license be in jeopardy?

The ex boyfriend is entitled to list his home with whomever he choses.

If your client is not on the deed, he has no claim to the property.

 

[nickjames]

I see your point. As for the other promise to pay the money other than the commission, do you think there is a basis for that since there is a written agreement to do so, or will the past consideration prevent this? I realize this question does not pertain to real estate, but any thoughts would be appreciated.

 

[LindaP777]

I see your point. As for the other promise to pay the money other than the commission, do you think there is a basis for that since there is a written agreement to do so, or will the past consideration prevent this? I realize this question does not pertain to real estate, but any thoughts would be appreciated.

Sorry, but it will probably boil down to "he says, he says" and you won't be able to prove a thing.

 

[PghREA]

Sorry, but it will probably boil down to "he says, he says" and you won't be able to prove a thing.

Not necessarily - there is a written agreement between them. It all depends on what the written agreement addresses and how it can be interrupted. That is were the attorney comes in.


Originally Posted by nickjames
I see your point. As for the other promise to pay the money other than the commission, do you think there is a basis for that since there is a written agreement to do so, or will the past consideration prevent this? I realize this question does not pertain to real estate, but any thoughts would be appreciated.

 

[LindaP777]

Not necessarily - there is a written agreement between them. It all depends on what the written agreement addresses and how it can be interrupted.

Oh, sorry, missed that!

 

[nextwife]

Is it a contract? Was it an AGREEMENT, legally? Was there consideration?

Or was it an offer? One he may or may not be contractually bound to uphold? We have not read what you have.

 

[lcannister]

Wasn't it just emails back and forth?

 

[nickjames]

The boyfriend stated in an email that he would offer a certain sum of money to my client upon breaking. My client countered in a reply email for a higher amount. The boyfriend then emailed again stating: "Agreed. You deserve that amount for all that you have done for the relationship." I'm not sure if the consideration will hold up but it IS a written agreement to pay.

 

[BoredAtty]

The boyfriend stated in an email that he would offer a certain sum of money to my client upon breaking. My client countered in a reply email for a higher amount. The boyfriend then emailed again stating: "Agreed. You deserve that amount for all that you have done for the relationship." I'm not sure if the consideration will hold up but it IS a written agreement to pay.

I think I agree with the other posters: There was no consideration. The "time and toil" was freely given without expectation of payment. So, it is not truly consideration (i.e. it was not given in exchange for anything). Therefore, the promise to give $25k was illusory.

As for the other question, I have no idea how suing somebody for breach of contract could result in a real estate agent losing his license, unless the lawyer was thinking the lawsuit would be brought frivolously and maliciously, and the governing board (whomever they are in your state) would frown upon it.