Brokerage fee – broker who lied and did not complete the job
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Question
Shalom and blessings,
I recently bought an apartment through a broker. The broker showed us the apartment and said that there were no building violations, and in the end it turned out that there were violations. He also presented the apartment as having a certain size, and in the end it turned out that this was not correct. In addition, he presented a certain price, and in practice the price was higher (the broker claims that it was the sellers who raised the price). Because of the price increase, the deal fell through.
The broker told us to drop this apartment and that we would find something else, and he even offered us other apartments.
After about two and a half months, my mother‑in‑law contacted the seller directly and brought the deal back to the table. I informed the broker that the negotiations over the apartment had resumed, and he did not contact us, did not offer help or service, and only wished us good luck. In practice, there were many difficulties in the negotiations, the deal almost fell through again, and only afterwards was the deal finally closed. Only after the signing did the broker come back into the picture and demand a brokerage fee.
The questions:
1. In such a case, am I obligated to pay the broker a brokerage fee according to Torah law and the laws of hiring workers?
2. Is the fact that the broker did not contact the two sides and did not accompany the closing of the deal considered negligence that reduces or cancels his right to payment?
3. Or is it sufficient that he showed the apartment and connected the parties in order to obligate payment of a brokerage fee, even if he did not accompany the closing of the deal?
4. Is this considered “he began the work but did not finish it,” and what is the halacha in such a case?
Thank you very much.
I recently bought an apartment through a broker. The broker showed us the apartment and said that there were no building violations, and in the end it turned out that there were violations. He also presented the apartment as having a certain size, and in the end it turned out that this was not correct. In addition, he presented a certain price, and in practice the price was higher (the broker claims that it was the sellers who raised the price). Because of the price increase, the deal fell through.
The broker told us to drop this apartment and that we would find something else, and he even offered us other apartments.
After about two and a half months, my mother‑in‑law contacted the seller directly and brought the deal back to the table. I informed the broker that the negotiations over the apartment had resumed, and he did not contact us, did not offer help or service, and only wished us good luck. In practice, there were many difficulties in the negotiations, the deal almost fell through again, and only afterwards was the deal finally closed. Only after the signing did the broker come back into the picture and demand a brokerage fee.
The questions:
1. In such a case, am I obligated to pay the broker a brokerage fee according to Torah law and the laws of hiring workers?
2. Is the fact that the broker did not contact the two sides and did not accompany the closing of the deal considered negligence that reduces or cancels his right to payment?
3. Or is it sufficient that he showed the apartment and connected the parties in order to obligate payment of a brokerage fee, even if he did not accompany the closing of the deal?
4. Is this considered “he began the work but did not finish it,” and what is the halacha in such a case?
Thank you very much.
Answer
Shalom and blessings,
According to the case you described, the broker is entitled to one third of the fee.
That is, he is paid for the proposal (showing the property) only, and not for the closing of the deal, which you completed on your own.
Of course, a final ruling cannot be issued without hearing both sides, and this guidance here is for direction only.
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