Sheree Demming, a real estate investor, engaged Cheryl Underwood as a realtor to buy and sell properties on multiple occasions between July 2002 and April 2007. In 2002, Demming became particularly interested in purchasing two properties located on East Sixth Street in Bloomington, Indiana. The properties were owned by Marion and Frances Morris. The Morrises retained realtor Julie Costley to manage the properties, which were not listed for sale. Underwood first presented an offer to Costley on Demming's behalf in the fall of 2002. After the offer was declined, Underwood offered to contact Costley every few months to inquire about the properties' availability. Over the next few years, up until early 2007, Underwood contacted Costley on Demming's behalf regarding the properties every four of five months. Additionally, in May, August, and October 2006, Underwood contacted Costley to inquire into the availability of the properties after Demming specifically instructed her to do so. While Underwood was not compensated for these services, it was discussed and understood that Underwood would be paid a real estate commission, at closing, in the customary amount of 7 percent of the sales price. However, unbeknownst to Demming, Underwood became interested in purchasing the properties for herself after she acquired a neighboring property in May 2006. In February 2007, Demming again instructed Underwood to call Costley and inquire into the availability of the properties for purchase. Underwood responded, "Sheree, she's just not going to sell." Demming nevertheless insisted that Underwood contact Costley, and said that if Underwood refused, she would contact Costley herself. Underwood then agreed to call Costley, and when she did so, she asked Costley to contact Mrs. Morris, whose husband had recently passed away, to find out if she would be interested in selling. Costley responded that she would contact Mrs. Morris, but she expressed doubt as to whether Mrs. Morris would be willing to sell. The next day, Underwood told Demming that the properties were not for sale. Demming instructed Underwood to "stay on it" because she believed that Mrs. Morris would be willing to sell in the near future. A few days later, Costley contacted Mrs. Morris, who instructed Costley to request that anyone interested in purchasing the properties tender a written offer. When Costley informed Underwood that Mrs.
Morris was willing to entertain an offer, Underwood did not relay this information to Demming. Instead, on March 9, 2007, Underwood and her partner Kinney tendered their own written offer to purchase the properties. A counteroffer was tendered and accepted, pursuant to which Underwood and Kinney agreed to purchase the properties for $650,000. Underwood and Kinney closed on the transaction on March 30, 2007. Does Demming have any recourse against Underwood?

  • CreatedJuly 16, 2014
  • Files Included
Post your question