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Hamptons.com
September 29, 2016

Can A Real Estate Broker Be Entitled To A Commission If The Client Buys A Different Property From The One He Shows The Buyer?

John A. Viterittiby John A. Viteritti
in Real Estate
Home Real Estate

In our last article, we drew on a court ruling that demonstrated how a seller/client may be obligated to pay a broker’s commission absent a written listing agreement, (employment contract), with the seller. In this article, we examine whether a broker who represents a buyer may be entitled to a commission even if the buyer buys a different property than the one shown to them by the broker, again, absent a written employment contract between the broker and buyer. For the answer, we look to the Manhattan case, SPRE Realty, Ltd. V. Dienst, May 20, 2014, Appellate Division, Supreme Court. The lower court ruling in favor of the broker took place on October 1, 2013.

The Appeals Court stated the following: “In this appeal, we must determine whether the plaintiff broker has alleged facts sufficient to establish its entitlement to a commission on the sale of real estate, where it expended significant effort locating an apartment for buyers who abandoned the transaction and purchased another apartment in the same building 18 months later.” It further stated: “In addition, we take this opportunity to clarify the standard by which a broker may be found to have been the ‘procuring cause’ of a real estate transaction.”

The court determined that the buyers retained the broker to help them purchase a luxury residence in Manhattan. It further determined that even though the parties did not have a written agreement, they did have an understanding that the broker would receive a commission after finding them a residence that met their expectations. The broker showed the buyers several residences in Manhattan over the next 18 months, and around October 2007, showed them a condominium unit under construction. After the buyers expressed an interest in the unit, the broker brought them to meet with the developer, and the broker negotiated terms of the purchase on the buyer’s behalf. The agreement was for two units for $11.5 million. A contract exchanged between the two attorneys representing the seller and buyer contained the same terms as negotiated by the broker. The broker searched for architects who could meet the buyers’ design requirements and subsequently arranged a meeting with an architect and the developer at the buyers’ summer home in Sag Harbor. In late August 2008, the buyers changed their minds and said they were no longer in the market for a new home. A few months later, according to the court, the broker contacted the buyers to inquire if they had any renewed interest in purchasing a home but did not receive a response. The court further stated that the broker continued “in good faith” to assist the buyers in their search for a commercial property to be used as an antique store. They repeatedly confirmed they were no longer seeking to purchase a residence and had no interest in the building where the unit they originally agreed to purchase was located. Despite these assurances, in February 2010, they purchased a different pair of units in the same building. The broker filed a lawsuit for a commission in May 2013 for breach of an implied contract and unjust enrichment on the part of the buyers. The buyers countered that they never signed a contract of sale for the first units, and the broker was not involved in the purchase of the units they did buy.

The court disagreed. It stated, in part: “A broker may be entitled to a commission where the buyer authorizes the broker to submit an offer to the seller but subsequently fails to execute or arbitrarily refuses to enter into a contract of sale.” The court also said: “Even if SPRE [the broker] is unable to prove that it was the procuring cause, it may be able to prove that the defendants [buyers] terminated its activities in bad faith and as a mere device to escape the payment of the commission.” The court also gave credit to the broker’s contention that the units the buyers ultimately purchased were “substantially identical” to the units that the broker had procured for them.

On May 20, 2014, the Appellate Court unanimously upheld the lower court’s decision of the October 1, 2013 ruling in favor of the broker with costs.

While in the past, it has been most common for real estate brokers to represent sellers, this is changing. It has now become, even in the Hamptons real estate market, more common for brokers to represent buyers.

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This Topic Has Legs And Knows How To Use Them

  • The 33rd Hamptons International Film Festival kicked off last Friday with the U.S. premiere of A24’s Eternity starring Elizabeth Olsen, Miles Teller, and Callum Turner.⁠
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Elizabeth Olsen attended the premiere on Friday, and on Saturday sat down with IndieWire’s Editorial Director Kate Erbland at the Sag Harbor Cinema as a part of the festival’s “A Conversation With” series. Later that day, the second “A Conversation With” took place as Ethan Hawke and moderator Alison Stewart talked about Blue Moon, as well as Hawke’s filmography. ⁠
⁠
Sydney Sweeney received the festival’s Achievement in Acting Award following the U.S. premiere of her film Christy in East Hampton. ⁠
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Notable Guests included: Alessandro Nivola, Alec Baldwin, Amanda Peet, Tonatiuh, Miriam Shor, Lois Smith, Tim Blake Nelson, Mareille Enos, Bob Balaban, E. Jean Carroll, Roberta Kaplan, Ellen Barkin, Bernie Telsie, Bill Condon.⁠
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📸: Jess Dalene⁠
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Check out the full gallery at Hamptons.com (Link in Bio)⁠
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#hiff #hamptonsinternationalfilmfestival #film #elizabetholsen #sydneysweeney #hamptons #hamptonsfilm⁠
  • When: Fri, Oct 3rd – Sun, Oct 5th, 2025
8am – 5pm

Where: Levain Bakery, 354 Montauk Hwy, Wainscott, NY

Levain Bakery is introducing a new cookie for a limited time: Peanut Butter Dark Chocolate Chip – a decadent mix of creamy and chunky peanut butter with rich dark chocolate chunks. Originally created to celebrate the opening of Levain’s Beverly Hills Bakery, this indulgent new flavor will now be available for just three days only, October 3–5, at all retail bakery locations.

To make the weekend even sweeter, guests who purchase a cookie will receive a Levain Bakery mini tote (while supplies last), a fan-favorite collectible sure to go quickly.

#levain #levainbakery #cookie #minitote #tote #hamptons
  • From world premieres at the Hamptons International Film Festival to SouthamptonFest! ⁠
⁠
Check out the Top Hamptons Events This Weekend!⁠
⁠
🎬 33rd Hamptons International Film Festival⁠
📅 Oct 3 – 13, 2025 | 9AM – 10PM⁠
📍 Various Locations⁠
A global lineup of films, shorts & documentaries.⁠
⁠
🍪 Levain Bakery⁠
📅 Oct 3 – 5, 2025 | 8AM – 5PM⁠
📍 354 Montauk Hwy, Wainscott⁠
Try the Peanut Butter Dark Chocolate Chip cookie + snag a mini tote (while supplies last).⁠
⁠
🎉 13th Annual SouthamptonFest⁠
📅 Oct 3 – 5, 2025 | 10AM – 7PM⁠
📍 Southampton Village⁠
Arts, culture, food & family fun all weekend long!⁠
⁠
🎶 SpringsFest⁠
📅 Oct 4, 2025⁠
📍 1 Parsons Pl, East Hampton⁠
Live music, raffles, crafts, blacksmith demos & more.⁠
⁠
💃 Salsa Social @ The Clubhouse Hamptons⁠
📅 Oct 4, 2025 | 9PM – 11:30PM⁠
📍 East Hampton⁠
Dance the night away w/ DJ Chile & more!⁠
⁠
🐚 34th Annual Largest Clam Contest⁠
📅 Oct 5, 2025 | 12PM – 3PM⁠
📍 Amagansett Life Saving Station⁠
Taste clam chowder, clam pies & cheer on the winners!⁠
⁠
🎷 East Meets West Jazz Jam Session⁠
📅 Oct 5, 2025 | 2PM – 5PM⁠
📍 Southampton Cultural Center⁠
Free community jazz jam – all are welcome.⁠
⁠
🌕 Full Hunter’s Super Moon Hike⁠
📅 Oct 6, 2025 | 6:30PM – 7:30PM⁠
📍 SOFO Museum Parking Lot⁠
Guided evening hike under the moonlight.⁠
⁠
✨ Which event are you most excited for?⁠
⁠
Check out more events at Hamptons.com (Link in Bio)⁠
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#hamptons #hamptonsinternationalfilfestival #hiff #jazz #fullmoon #hike #film #levainbakery #community
  • So many fun fall activities in the Hamptons 🎃

@fairviewfarmatmecox 
@corwithsfarmstand 
@milkpailfarmorchard 

Check out our fall guide at Hamptons.com (Link in Bio)

#hamptons #fall #applepicking🍎 #pumpkin #maze #pettingfarm
  • As summer winds down and the cool breezes of fall approach, jewelry enthusiasts and fashion lovers alike are looking for the latest seasonal trends. Yael Fraynd, founder and president of Yaya Publicity, offers an insider’s perspective on what to expect this fall — especially for those embracing the chic lifestyle of the Hamptons.⁠
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Looking ahead to fall, Fraynd described the evolving styles with enthusiasm. For fall, expect to see bold statement pieces, rich gemstone colors like orange and a playful mix of metals. ⁠
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She also noted the influence of pop culture on jewelry trends, including celebrities like Taylor Swift, who is recently engaged, saying, “It could also be just, you know, with Taylor Swift, who has such a big effect on what people like.”⁠
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On the seamless transition from summer to fall styles, she observed, “In the summer, you see a bit of Western-inspired pieces, and I think that they really do kind of transition into fall really nicely. ⁠
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@yayapublicity⁠
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Read the full article at Hamptons.com (Link in Bio) ⁠
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#fall #falltrend #falljewelry #hamptons⁠
  • Apollo in the Hamptons returned with a celebratory evening at the EHP Resort & Marina (Si Si Restaurant) in East Hampton. The annual fundraiser supported Apollo’s year-round artistic and educational programs and its first full-scale renovation and restoration. ⁠
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📸: Danté Crichlow for The Apollo⁠
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Check out the full gallery at Hamptons.com (Link in Bio)⁠
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#apollo #apollotheater #hamptons #easthampton #benefit #fundraiser
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