A real estate brokerage sought commission after the seller refused to complete a residential sale despite entering an agreement of purchase and sale.
The seller argued the brokerage was not entitled to commission because its agent failed to disclose an existing buyer agency relationship with the purchasers before presenting the offer, contrary to the listing agreement and fiduciary duties.
The court held that the agent failed to make the required written disclosure of the dual agency relationship prior to presenting the offer.
This non‑disclosure constituted a material breach of the listing agreement and the agent’s fiduciary obligations.
As a result, the brokerage was disentitled from recovering commission under the agreement.
