Client Alert

Contact:
Arnold D. Litt, Esq., Chairperson
Real Estate Law Group
201-498-8520

Case: Dennis M. Sammarone vs.
James J. Bovino, et als.
Docket No.: A-6287-05T1
Decided July 23, 2007

SUPREME COURT DENIES CERTIFICATION ALLOWING AN APPELLATE RULING
TO STAND, HOLDING THAT, THOUGH NOT A LICENSED BROKER, ONE MAY
SUE FOR A COMMISSION BASED ON AN ORAL AGREEMENT

Dear Clients and Friends:

By way of Client Alert dated August 2, 2007, I summarized an Appellate Division holding that one who is not a licensed real estate broker may nevertheless sue for and recover a commission from a Buyer who he introduced to a Seller, where issues of estoppel arise out of the Buyer's conduct who induced the introduction through promises of payment of the commission.

Since that Alert, the respondent in the Appellate Division case moved for certification to the Supreme Court arguing for reversal of the Appellate Division holding. On December 12, 2007 the Supreme Court denied certification, thereby allowing the Appellate Division ruling to stand. As such, the case will be again tried below in order to determine the merits of Sammarone's case. As previously indicated, this is a case of first impression in New Jersey. Sellers and Purchasers should be cautious in retaining the services of unlicensed persons in connection with procuring purchasers or sellers respecting real estate transaction, especially where, as here, the facts may support liability on the part of the Purchaser for the payment of a commission or finder's fee to the procuring person, notwithstanding the fact that he or she may be unlicensed.

The ultimate determination in the case will be fact sensitive and subject to Plaintiff's proof at time of trial. We will keep you updated as events warrant.

If you have any questions with regard to the above case, please do not hesitate to contact Arnold D. Litt, Esq. at 201-342-6000 or 201-498-8520; or alitt@hertenburstein.com.

If you have any questions with regard to the above case, please do not hesitate to contact Arnold D. Litt, Esq. at 201-342-6000 or 201-498-8520; or alitt@hertenburstein.com