Lori Shabtai sues Town over $274K commission on major deal

Heiberger says she "will be paid in full"

New York /
May.May 04, 2018 03:30 PM

Andrew Heiberger and Lori Shabtai (Credit: Studio Scrivo and Getty Images)

Lori Shabtai — a commercial broker at Town — has sued the firm and CEO Andrew Heiberger, claiming she’s owed $273,500 in unpaid commission.

The suit, which names Town Commercial and Heiberger, is dated April 23 — just days after the firm shuttered its sales and leasing operation.

In the affidavit, Shabtai — a former executive at Winick Realty Group — claimed she earned $487,000 for brokering a “major real estate transaction” while she was affiliated with Town. (The deal was not identified in court documents.) According to the filing, after Town failed to pay her fee in full, Shabtai agreed to be paid in five installments between March 9 and April 11.

In court documents, Shabtai claimed Town made the first two payments, totaling $184,000, but missed a $100,000 payment on March 27. On April 4, Shabtai’s lawyers wrote to Heiberger demanding Town pay the remaining balance of $318,500 (including late fees).

Town wired $75,000 on April 9, but the company still owes Shabtai $273,500, the affadavit claims.

In a statement, Heiberger called Shabtai a “terrific broker” and said, “She is owed a portion of one commission from a large deal and will be paid in full.”

Since closing Town’s core brokerage on April 19, Heiberger has said “high commission costs and a fierce recruiting climate” made the business unsustainable.

Shabtai — whose father Mel Weitz was head of the Melmarkets supermarket chain on Long Island — was an executive at Winick from 2005 to 2014.

On LinkedIn, Shabtai said she considers real estate an art form. “I dont base success on how much commission I earn,” she wrote. “I base it on how happy or successful my customers are.”


Related Articles

arrow_forward_ios
eXp CEO Glenn Sanford (eXp, iStock)
Virtual broker eXp Realty has another record quarter
Virtual broker eXp Realty has another record quarter
RSA's Joseph Strasburg and Judge Lawrence Marks (Getty, Strasburg via Jeffersons Siegel)
Landlord group challenges state eviction ban
Landlord group challenges state eviction ban
Redfin CEO Glenn Kelman (Getty, Redfin)
Pocket listings exclude minority homebuyers, Redfin CEO says
Pocket listings exclude minority homebuyers, Redfin CEO says
(378 West End, 300 West and 567 Ocean Avenue, Getty)
April was best month for new condo sales in 5 years
April was best month for new condo sales in 5 years
As the economy rebounds, rental prices are following suit. With the eviction ban recently overturned, that spells trouble for tenants who are struggling to make ends meet. (iStock)
Rents rise across country as economy rebounds
Rents rise across country as economy rebounds
Howard Lorber (iStock, Getty)
Elliman reports $14M quarterly profit, 65% revenue jump
Elliman reports $14M quarterly profit, 65% revenue jump
Judith Nathan, Rudy Giuliani and 353 Lopers Path in Water Mill (Getty, Google Maps)
Rudy Giuliani’s ex-wife sells Hampton home for $5M
Rudy Giuliani’s ex-wife sells Hampton home for $5M
Of the 110 metro areas with at least half a million people, 29 saw losses in 2020. (iStock)
More urban areas lost population in 2020
More urban areas lost population in 2020
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...