Blondell v. Ahmed

786 S.E.2d 405 (2016), aff’d, 804 S.E.2d 183 (2017)

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Nature of the Case

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Facts

Blondell (P) is a real estate broker. Ahmed (D) owned a home. In March 2013, P and D entered into the Listing Agreement. The parties used the 'Exclusive Right to Sell Listing Agreement' form produced by the North Carolina Association of REALTORS®. Pursuant to the Agreement, the listing would be for a period of one year (expiring in March 2014). On 3 April 2013, P showed D's home to Michael and Susan Fekete. On 6 April 2013, the Fekete's made an offer which P presented to D. D promptly rejected the offer. Over the course of the next few weeks, P had a number of communications with both D and Fekete regarding the home. On 22 April 2013, D informed P that they no longer wished to list their home for sale and of their desire to terminate the Listing Agreement. The Termination Agreement provided that the parties would no longer be bound by the Listing Agreement. Further, the Termination Agreement provided that it would become 'effective on the date that it has been signed by both the Parties.' On 22 April P e-mailed D, attaching the Termination Agreement unsigned. The next day D executed the Termination Agreement and e-mailed it back to P. Prior to 2 May 2013 - without the knowledge of P - D and the and the Feketes met to discuss a possible transaction. They tentatively agreed to a purchase price for the home. On 9 May 2013, Fekete presented a written offer to D based on their verbal understanding. Prior to executing Buyers' offer, D contacted P about the status of the Termination Agreement. D did not disclose that they had a written offer from Fekete that they intended to sign. On 10 May 2013, P executed the Termination Agreement and e-mailed a copy. On 11 May 2013, D executed the contract to sell their home. The transaction closed in late June 2013, unbeknownst to P. P sued D contending that, pursuant to the Listing Agreement, D became obligated to pay a real estate commission when D sold their home to the Feketes. D alleged that the Listing Agreement had been terminated in the Termination Agreement. The trial court entered summary judgment in favor of D. P appealed.