Entitlement to brokerage fees arises only when the client signed all documents and the broker was the efficient factor in the transaction

A real estate broker demanded from property buyers payment of brokerage fees, relying on a partial exclusivity agreement that was executed between them several years before the transaction took place, but beyond this he did not contribute anything.

The Court rejected the claim and determined that the exclusivity agreement executed between the parties is invalid. In order to receive brokerage fees, a real estate broker is required to have the client sign a marketing agreement and a work order, show a marketing plan and be the effective factor in the transaction. Here, the clients did not sign all the documents, there was no marketing plan and the broker was not the effective factor in the formation of the sales transaction. Therefore, he is not entitled to brokerage fees.