Broker Who Rented House to Tenant Not Entitled to Sales Commission When Tenant Bought House

Real estate broker sued homeowner for failing to pay a commission. The broker had an agreement to find a tenant for the house and that, if tenant later purchased the house, the broker would receive a commission for that. The tenant who rented the house through the broker did later buy the house without the broker's involvement. The Suffolk County court ruled for the broker, finding the brokerage agreement enforceable. The homeowner appealed and won. The brokerage agreement expired at the end of the lease term. So the broker wasn't entitled to commission from the owner's later sale of the house to tenant. Tenant later rented the house again for one or two months during several summers, but the owner and tenant didn't use the broker's services to negotiate the lease that immediately preceded tenant's purchase of the house.

NRT New York, LLC v. Brown: Index No. 2016-11246, 13027, 2018 NY Slip Op 08493 (App. Div. 2 Dept.; 12/12/18; Dillon, JP, Roman, Miller, Duffy, JJ)