Hughes v. Morrison

Opinion

KINGSLEY, J.

Defendants appeal from a judgment in favor of real property brokers in an action for a commission on a sale. We affirm.

After a long period of negotiations, plaintiffs procured the sale of defendants’ property. In connection with that sale, which ultimately called for a cash down payment, with instalment payments on the balance, such payments being secured by a deed of trust, the sellers and the brokers entered into a commission agreement

1

reading as follows;

“To: Elizabeth Hughes, Agoura, California.

David Swenson, 5521 Reseda Blvd.,

Tarzana, California.

“Re: Option to Purchase Real Property dated May 16, 1970, as amended by Amendment of

Option Agreement dated February

261971—Roy

[105]

V. Morrison and Veva D. Morrison, Optionors; J.B.R. Development Co., Optionee

“In reference to the above real property purchase agreement,

this will confirm our oral understanding that in the event

the escrow above referred to

in the Option Agreement as amended closes by transfer of title to J.B.R. Development Co., Optionee, or its nominee, then in such event you will be paid a real estate commission in the amount of five percent (5%) of the purchase price when and as payments on account of

said purchase price

are received by the undersigned, said five percent commission to be divided equally between Elizabeth Hughes, real estate license No. 004-936, and David Swenson, real estate license No. 102-210.” (Italics added in original.) The sales agreement of February 26, 1971, referred to in that commission agreement was later modified by the sellers and the buyer but the sellers continued to pay commissions as stipulated in the commission agreement until, in 1975, the buyer defaulted in its installment payments. The sellers thereupon foreclosed on the deed of trust and retook title to the property. In spite of the foreclosure, extensive negotiations between buyer and sellers took place, in which the brokers participated along with an attorney for the sellers.