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The court ruled against Warburg. It said the 90-day window in the contract had clearly expired before the sale closed. The court also found no valid contract modification. New York law requires contract changes to be in a signed writing between the parties. A brief email from the sellers' attorney didn't meet that standard. The quantum meruit claim failed too, because the clear written agreement already covered this exact situation. The court also dismissed Warburg's claim that the attorney improperly interfered with its business, finding no underlying contract breach and no proof the sellers would have paid Warburg otherwise.
Warburg Realty had an exclusive listing agreement to sell a home. Warburg asked to end that agreement, and it terminated on October 28, 2019. After that date, Warburg did no more work for the sellers. Warburg had earlier introduced a buyer to the sellers. The listing agreement included a 90-day window after termination. If that same buyer purchased the home within 90 days, Warburg would still get a commission. But the sellers didn't sign a contract with that buyer until November 3, 2020, more than a year after the listing ended and far past the 90-day window.
The main question was whether Warburg still earned a commission, even though the sale happened long after the listing agreement ended and its 90-day protection period expired. Warburg also argued the agreement was modified by email, or that it deserved payment under "quantum meruit," a legal idea meaning fair payment for services provided, even without a formal contract.
This case shows how courts strictly enforce time limits written into real estate listing agreements. Brokers who negotiate protection periods must make sure sales happen within that window to secure a commission. It also reminds parties that email exchanges alone usually can't change a signed contract's terms.
Talk to a licensed real estate lawyer in New York.