B.C. property owners face $52K in real estate fees even though sale never happened

A Metro Vancouver couple is left facing tens of thousands of dollars in real estate commission fees, even though the sale of their properties never actually went through.

When Mike Armstrong and his wife Jessica set out to sell two cabins nestled in the trees at Lake Errock east of Mission, they had planned to use the proceeds to move to Vancouver Island to be closer to family.

He never expected five years later they would be left facing tens of thousands of dollars in real estate commission fees without having sold either of the properties.

“Never. No, no. I mean, who would?” he said. “You’re trusting.”

A B.C. Supreme Court ruling issued April 25 ordered the couple to pay Century 21 Seaside Realty $52,500 in commission.

In her decision, Justice Sheila Tucker found there was an enforceable contract of sale, even though the deal never closed.

“The Commission Clause does not refer to a closing or completion,” she said. “The Commission Clause read on its own discloses that commission is tied to the existence of an enforceable contract.”

She also referred to a term in the multiple listing agreements (MLS) contract covering the brokerage’s remuneration, which stated: “The remuneration due to the Listing Brokerage shall be payable on the earlier of the date the sale is completed, or the completion date, or where no contract of sale has been entered into seven days after written demand by the Listing Brokerage”.