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Stiffed brokers fight back |
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Debra is quoted extensively in this The Real Deal article highlighting the growing trend toward lawsuits against New York real estate brokers. In this difficult economic climate, many real estate firms are neglecting to pay broker commissions, bouncing checks to vendors, and failing to return refundable deposits to customers.

From broker to broke: A growing number of real estate firms are skimping on paying their bills and squabbling with agents over commissions, industry insiders say. Agents, vendors and customers are complaining that real estate firms, struggling to make ends meet in a slow market, are skipping payments, paying them late or bouncing checks. Meanwhile, customers say firms are keeping refundable deposits. And more lawsuits are being filed by vendors — ranging from accountants to movers — who claim they, too, have been stiffed. For their part, brokers are more likely to file suit and incur legal fees over small payments they might otherwise have let slide. "In all sorts of contracts, suddenly payments are not being made," said Debra Guzov, a founding partner at law firm Guzov Ofsink. "We're seeing more of it because companies are having problems making payments in general and staying in business." Guzov and other attorneys say they've seen a rash of lawsuits from agents claiming they are owed commissions by their brokerages.
Download the complete article:
stiffed-brokers-fight-back.pdf |