Rotemi Realty, Inc. v. Act Realty Co., Inc.

Summary

The Florida Supreme Court held that a real estate brokerage agreement providing for a contingency commission on the sale of private property to a government entity is not facially against public policy. Such an agreement is unenforceable only if the sale was obtained through corruption or improper influence. The court also affirmed that competent, substantial evidence supported the trial court's finding that the brokers were the procuring cause of the sale and were entitled to their commission.

Holdings

1. A real estate broker may be paid a contingency fee for the sale of private property to the government unless the sale was obtained through corruption, improper influence, favors, or other corrupt means. The brokerage agreement was not facially illegal and complied with Florida public policy because the record contained no evidence of corruption or improper influence.
2. The brokers were the procuring cause of the sale and were entitled to the agreed commission because competent, substantial evidence showed that they initiated negotiations through an affirmative act bringing the buyer and seller together and remained involved in the continuing negotiations.

Questions Presented

1. Whether a real estate brokerage agreement providing for a commission contingent on the consummation of a sale of private property to a government agency violates Florida public policy.
2. Whether competent, substantial evidence supported the trial court's finding that the brokers were the procuring cause of the sale and therefore entitled to their commission.
3. Whether the statutory restrictions on contingency fees for specified professional-service contracts and lobbying fees applied to the brokers' ordinary real estate brokerage activities.

Disposition

quashed