Good Property squeezed Elliman out of $1M commission on $22M townhouse sale: suit

Brokerage says it had exclusive on West Village listing, but CORE received the referral

TRD New York /
March 17, 2016 06:10 PM

A lawsuit filed by Douglas Elliman claims Joshua Gurwitz’s Good Property Company stiffed the brokerage on a $1.1 million commission for the $21.6 million sale of a single-family townhouse at 74 Washington Place.

In a lawsuit filed in New York Supreme Court on Thursday, the brokerage claimed it struck an agreement with 74 Washington Place Partners LLC, an entity of Good Property, that it would be the exclusive broker for the sale of the West Village townhouse between Oct. 12, 2015 and April 13, 2016. The agreement entitled Elliman to a 5 percent commission it was to receive at closing, the suit says.

The lawsuit claims that in February, Gurwitz instead referred negotiations to CORE, which had the listing in 2015 before Elliman took over. On March 3, Elliman was informed through Good Property’s lawyer that no commission would be paid to the brokerage.

The developer paid $9.3 million for the property through 74 Washington Place Partners LLC in 2012. It converted the seven-story building’s four units into a single-family home with six bedrooms, 10 bathrooms and 9,300 square feet. Good Property was asking $23.5 million before agreeing to $21.6 million. The deal is in contract and has not closed.

An Elliman spokesperson said it does not comment on pending litigation. CORE declined to comment and Gurwitz could not immediately be reached.

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