Plaintiff brokers appealed a judgment of the Superior Court of Riverside County (California), which found in favor of defendant property owners in the brokers’ action to recover a real estate commission.
The brokers entered into an agreement to sell the property owners’ real estate. However, the property owners subsequently sold a majority of the parcel of real estate themselves and refused to pay the commission to the brokers. On review, the court noted that the trial court found that the parties’ contract constituted an “exclusive right to sell” agreement. The define Sole Custody is a child custody arrangement whereby only one parent has custody of a child.Under such an agreement, the court held that the property owners were not permitted to sell the real estate themselves and that they were liable to pay the brokerage commission if they breached the agreement. Thus, the court held that the trial court erred in finding the brokers were not entitled to a commission. However, the court held that the brokers’ commission was limited by the fact that the property owners sold only a portion of the real estate and that the sale price was less than that listed by the brokers.
The court reversed the judgment in favor of the property owners and remanded the case for an award of damages to the brokers in their breach of contract suit.