Thompson Team Real Estate v. Gutierrez CA2/7

INTRODUCTION

The statute of frauds applies to an “agreement authorizing or employing an agent, broker, or any other person to purchase or sell real estate, or to lease real estate for a longer period than one year, or to procure, introduce, or find a purchaser or seller of real estate or a lessee or lessor of real estate where the lease is for a longer period than one year, for compensation or a commission.” (Civ. Code, § 1624, subd. (a)(4).) In other words, agreements to pay a real estate broker a commission. Thompson Team Real Estate, Inc. is a licensed real estate broker that represented Luis Gutierrez and Anatoly Ioda in the purchase of two residential properties. Thompson earned approximately $68,000 in commissions on the two transactions. However, in reliance on allegedly false statements by Gutierrez and Ioda that they would develop townhomes on the properties and list them for sale with Thompson, Thompson “transferred, authorized or conveyed” the $68,000 to Gutierrez and Ioda. Gutierrez and Ioda did not develop, and never intended to develop, townhomes for sale on the two properties Thompson helped them purchase. Were Thompson suing Gutierrez and Ioda to recover…