In a case handled by John Browder over an $89,700.00 real estate commission, the Arizona Court of Appeals affirmed the trial court’s summary judgment in favor of the real estate brokerage and agent. Click here for published opinion.
The appellant had alleged that the broker for the real estate company had violated Arizona Revised Statute 32-2151.01(G) by failing to initial the listing agreement within ten business days of the parties signing it and, as such, the brokerage was not legally entitled to the commission.
In upholding the trial court’s ruling, the Court of Appeals drew a legal distinction between a failure to comply with a substantive statutory requirement, which could preclude an agent from suing to collect a real estate commission, and a failure to comply with a “regulatory” statutory requirement, which would not bar the agent from suing to recover a real estate commission.
The Court of Appeals affirmed the trial court’s summary judgment order as a matter of law, reasoning that even if the brokerage had violated Arizona Revised Statute 32-2151.01(G), the violation was of a “regulatory” statutory requirement and could not serve as a bar to the agent’s entitlement to the commission. The Court of Appeals also affirmed the trial court’s award of attorneys’ fees to the real estate brokerage and agent.
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