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Cityscapes Development, LLC v. Scheffler

Court of Appeals of Minnesota

June 15, 2015

Cityscapes Development, LLC, Appellant,
v.
Larry Scheffler, et al., Respondents

Clay County District Court File No. 14-CV-13-2584.

SYLLABUS

Real estate licensees must strictly comply with Minn. Stat. § 82.66, subd. 1(d)(1) (2014) 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.

For Appellant: Jon R. Brakke, Caren L. Stanley, Vogel Law Firm, Fargo, North Dakota.

For Respondents: Mark R. Hanson, Charlotte J. Skar, Nilles Law Firm, Fargo, North Dakota.

Considered and decided by Hudson, Presiding Judge; Kirk, Judge; and Smith, Judge.

OPINION

Page 67

SMITH, Judge

We affirm the district court's grant of summary judgment to respondents because, as a matter of law, appellant is not entitled to a commission.

FACTS

Respondents Larry and Helen Scheffler, as Trustees of the Scheffler Family Trust, Robert Groesbeck, and Mary Groesbeck retained appellant Cityscapes Development, LLC, to sell certain real property in April 2010. After their first listing agreement expired, the parties entered a second listing agreement in April 2011. Respondents agreed to pay appellant a five percent commission if appellant " negotiate[d] an exchange or sale of the property during the duration of this agreement." The second listing agreement contained the override clause that is at issue in this case. It states:

CUSTOMER PROTECTION: In the event the property is sold/leased/exchanged within 180 days after the expiration of this agreement to any person or entity involving any of the people introduced to the property by [appellant] either directly or indirectly through cooperating BROKERS, during the term of this agreement, a full commission shall be due and payable.
MINNESOTA ONLY: In order to obtain customer protection, the agent must notify owner, within 72 hours of the expiration of the listing, the names of all of the prospects that are protected.

In May 2011, respondents sold part of the property and paid appellant the commission due. At ...


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