On July 14, 2018 a
Exhibit,Appendix
was filed
involving a dispute between
Ellyn Berk,
Pamela Goldstein,
Paul Benjamin,
Tony Berk,
and
Houlihan Lawrence Inc.,
for Commercial Division
in the District Court of Westchester County.
Preview
FILED: WESTCHESTER COUNTY CLERK 04/22/2024 11:45 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1882 RECEIVED NYSCEF: 04/22/2024
EXHIBIT 9
FILED: WESTCHESTER COUNTY CLERK 04/22/2024 11:45 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1882 RECEIVED NYSCEF: 04/22/2024
From: Arlt, Lewis
Sent: Wed 2/18/2015 11:07 AM (GMT-05:00)
To: Landis, Cynthia
Cc:
Bcc:
Subject: RE: Policy in the old JBF office
BTW, I learned today the Jackson rule was, that if you sold your own listing, you received a total of 55%
for both sides together. In other words you got a financial penalty.
Lewis Arlt
Licensed Real Estate Associate Broker
Brokerage Manager
Houlihan Lawrence
32 Popham Road
Scarsdale, NY 10583
Office 914-723-8877
Cell 914-309-5766
Original Message
From: Landis, Cynthia
Sent: Wednesday, February 18, 2015 6:47 AM
To: Arlt, Lewis; Dalton, Debra
Subject: Re: Policy in the old JBF office
Sorry, hit send before I was done. Anyway, before the days of buyer agency, and whereas the JBF
Scarsdale agents had a reputation for being barracudas, I remember that Jack had a policy that
punished/penalized listing agents who listed and house and sold it themselves. Are you familiar with
this?
Why I'm asking is that we have had 2 unsavory instances where a TEAM of listing agents has behaved in
ways that are creating issues in our Bronxville office. When one is a listing agent, one may find a buyer
during an open house, let's say, and explain that they cannot be a buyer's agent for the customer
because of their fiduciary relationship with the seller. However, they can work with the buyer as a
customer, (unrepresented in the deal). Although the agents are working for the sellers best interests in
that situation, if another bid comes in from an agent in our own office working as a buyer agent, it gives
the listing agent the ability to know both offers and to create a sense of impropriety (and perhaps an
ethics violation). Here is the very specific question, I am asking: does your office have a policy such that a
listing agent MUST a hand off a customer for their own listing to a designated agent if the buyer wants to
bid on a listing of hers/theirs?
Although the law of agency says that it is permissible for a listing agent to sell her own listing to a
customer with no legal violation, our other client ( a bidder working with another office agent as a buyer
agent) might have issues with the listing agent knowing both bids and additionally having a financial
incentive to sway the deal to her own customer. Thus, my question regarding the penalty which used to
be the rule in the old JBF office.
Secondly, the above situation has created a problem which is that Sheila (buyers agent) now refuses to
submit an offer through the listing agents (Val and Diane) because yesterday Val and Diane "won" a deal
where they were the listing agents and at the very last minute when they had been bidding with Sheila
CONFIDENTIAL HL00180144
FILED: WESTCHESTER COUNTY CLERK 04/22/2024 11:45 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 1882 RECEIVED NYSCEF: 04/22/2024
and had given her a final price that Sheila's buyers had to reach in order to get an AO and Sheila finally
got to that price, the seller asked Val and Diane to call a former customer of theirs who had previously bid
on the house to see if that bidder would increase her bid and meet Sheila's bid. Although I honestly feel
that Val and Diane were acting at the owners request, and that owner had every right to ask her agents to
try this, Sheila's buyers feel tricked and Val and Diane had never informed Sheila about their former
bidder (customer) so she is livid. It's not only an issue of agency law but additionally a sense of fair play
involving transparency. Now Sheila wants to bid on another one of their listings (actually has already
submitted an opening bid) but based on yesterday's events refuses to deal through Val and Diane since
she feels they have a history of being less than forthcoming regarding buyers in their pockets.
I don't know how to unravel this because I cannot call the owner myself to advocate for the owner nor for
Sheila, (as an employee of HL I have a dual agency role already), and Val and Diane's owners won't want
to speak with me instead of Val and Diane anyway. The owners relationship is with their listing agents.
Sheila understandably is insistent after yesterday's dealings (on another listing with her other buyers.) I
am ready to make it a policy that regardless of the option of acting as a seller's agent when dealing with a
buyer, all listing agents must always use a designated agent and never submit an offer or converse with a
potential bidder about terms and financing because at any minute, another offer might arise from within
our office and the listing agent could be in the situation of knowing about both bidders and could be
accused of tilting a deal in favor of the buyer customers for the listing agent's own financial advantage.
Makes me want to return to the old JBF policy...
Thoughts?
Cindy
Cynthia G. Landis,
Licensed Associate Real Estate Broker
HOULIHAN LAWRENCE
Brokerage Manager:
Bronxville and Yonkers Brokerages
Mobile: 914-275-6743
Clandis@houlihanlawrence.com
Sent from my iPad
> On Feb 18, 2015, at 5:58 AM, Landis, Cynthia wrote:
>
> Hi Lewis,
> I recall that Jack Browning, one of the former partners of the old JBF (pre- Sotheby's) had a policy
which "penalized" agents who listed and sold their own properties.
>
> Cynthia G. Landis,
> Licensed Associate Real Estate Broker
> Houlihan Lawrence
> Brokerage Office Manager,
> Bronxville & Yonkers offices
> 914 275 6743
> Sent from my iPhone
CONFIDENTIAL HL00180145
Document Filed Date
April 22, 2024
Case Filing Date
July 14, 2018
Category
Commercial Division
For full print and download access, please subscribe at https://www.trellis.law/.