Real Estate Brokers – Override Clauses

cassiejohnson//June 19, 2015//

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Respondent retained appellant to sell certain real property. Respondents agreed to pay appellant a five percent commission if appellant negotiated an exchange or sale of the property during the duration of the agreement. The agreement contained an override clause that was at issue in this case. Appellant challenged the District Court’s conclusion that it was not entitled to a commission as a matter of law. The Court of Appeals concluded that real estate licensees must strictly comply with Minn. Stat. sec. 82.66, subd. 1(d)(1) by providing a protective list to the seller within 72 hours of the listing agreement’s expiration to enforce an override clause in a listing agreement. Affirmed.

A14-1719 Cityscapes Dev., LLC v. Scheffler (Clay County)

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