Westside Estate Agency, Inc. v. Randall

Opinion

HOFFSTADT, J.

We are all familiar with the phrase, “caveat emptor”: Buyer beware. This case deals with its less renowned cousin, “caveat sectorem”: Broker beware. California’s statute of frauds declares invalid any “agreement authorizing or employing an agent, broker, or any other person to purchase or sell real estate” unless that agreement is in writing and signed by the broker’s client. (Civ. Code, § 1624, subd. (a)(4).) This is a nearly absolute rule, with only a few very narrow exceptions. The broker in this case missed out on a $925,000 commission because he agreed to help a…