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Emblaze will not pay realtor commission

February 18, 2011
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The court rejected a lawsuit by a real estate company against the Emblaze Group and accepted the position of Afik Turgiman's office that the realtor was not the "effective factor" in the engagement.

The real estate company DBHN Ltd. filed a lawsuit against two companies in the Emblaze Group demanding the payment of brokerage fees in connection with two transactions for renting offices in a building in Raanana. From the office of Afik Turgiman, and determined that the brokerage agreement did not grant the broker a right to a salary under the circumstances and the broker was not the "effective factor" in the contract.

The ruling states that Emblaze planned to move offices and contacted the realtor, but ultimately did not move its business to another building and only changed the location in the building while communicating directly with the building owners. Nonetheless, the broker sued the Emblaze Group on the grounds that his actions and recommendations improved the Emblaze Group's position vis-à-vis the landlord. The court considered the position of the Emblaze Group, through the office of Afik Turgiman, that in the absence of a lawful mediation agreement, according to section 14 of the Realtors Law (1996), the plaintiff is not entitled to brokerage fees and ruled that even if there is a brokerage agreement. His mouth did not exist.

The court also accepted the Turgiman bus' claim that the realtor had already received payment from the property owner and subleased the property and ordered the plaintiff to pay expenses to the defendants. In the ruling, Judge Yona Etadegi states: "Even the natural sense of justice does not reconcile with Emblaze's charge of the brokerage fees claimed from it."

Adv. Shlomi Turgiman, a senior partner in the firm of Afik Turgiman, which specializes in the field of companies, stated: "The court's ruling emphasizes the importance of signing an orderly brokerage agreement. The ruling strengthens the legal certainty of the contractors in lease agreements who may find themselves being sued by brokers with whom they have contracted in the past. "