Neary v. Mikob Properties, Inc.
340 S.W.3d 578
Tex. App.2011Background
- Neary and SJH sued for a real estate brokerage commission tied to the 2003 Comunidad apartment sale; final purchase agreement did not include a commission provision.
- SJH was not licensed at the time of the Comunidad transaction; Neary was licensed.
- Term Sheet (Nov 17, 2003) signed by Neary (on behalf of Comunidad Corp.) and Kobernick (Mikob Properties), stating a 2% commission and describing payment terms, but labeled as non-binding.
- Emails surrounding the Term Sheet, before and after, were offered as additional writings to satisfy RELA §1101.806(c).
- Trial court granted summary judgment for appellees under RELA; the suit was severed and the judgment became final; the issue on appeal was whether RELA’s writing requirement was satisfied by the Term Sheet and emails viewed together.
- Appellants contend the Term Sheet and emails meet RELA; appellees contend they do not and that SJH lacked license for the transaction; the court agreed with appellees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether RELA requires strict, signature-based compliance. | Term Sheet and emails collectively satisfy RELA. | Term Sheet is non-binding and lacks essential RELA elements. | No; RELA strict compliance not met. |
Key Cases Cited
- Lathem v. Kruse, 290 S.W.3d 922 (Tex.App.-Dallas 2009) (strict compliance required; writing must satisfy four elements)
- John Wood Group USA, Inc. v. ICO, Inc., 26 S.W.3d 12 (Tex.App.-Houston [1st Dist.] 2000) (non-binding clause can defeat enforceability)
- Treo Enterprises v. Henry S. Miller Co., 585 S.W.2d 674 (Tex. 1979) (strict compliance with RELA required; license of agent not enough)
- Cohen v. McCutchin, 565 S.W.2d 230 (Tex. 1978) (memorandum must contain all essential terms)
- Tex. Builders v. Keller, 928 S.W.2d 479 (Tex. 1996) (writing must identify land with reasonable certainty)
- Harkinson, 944 S.W.2d 631 (Tex. 1997) (brokers rely on signed writing to enforce RELA)
