NEAL SILBERBERG VS. FEDERATED HOMES (L-7971-16, ESSEX COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedDecember 20, 2019
DocketA-4183-17T2
StatusUnpublished

This text of NEAL SILBERBERG VS. FEDERATED HOMES (L-7971-16, ESSEX COUNTY AND STATEWIDE) (NEAL SILBERBERG VS. FEDERATED HOMES (L-7971-16, ESSEX COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NEAL SILBERBERG VS. FEDERATED HOMES (L-7971-16, ESSEX COUNTY AND STATEWIDE), (N.J. Ct. App. 2019).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-4183-17T2

NEAL SILBERBERG,

Plaintiff-Appellant,

v.

FEDERATED HOMES and COLLEGIATE TITLE,

Defendants-Respondents,

and

ANNIE MAC MORT.,

Defendant. ___________________________

Submitted October 28, 2019 – Decided December 20, 2019

Before Judges Sumners and Natali.

On appeal from the Superior Court of New Jersey, Law Division, Essex County, Docket No. L-7971-16.

Neal Silberberg, appellant pro se.

Respondents have not filed briefs. PER CURIAM

Plaintiff Neal Silberberg, a self-represented real estate broker, appeals

from a March 20, 2018 Law Division order granting an involuntary dismissal

under Rule 4:37-2(b) in favor of defendants Federated Homes, the designated

listing broker, and Collegiate Title, the designated closing agent, and dismissing

his claim that he was owed $5490, specifically an additional three percent sales

commission from the sale of a Department of Housing and Urban Development

(HUD) property in Newark. After considering plaintiff's arguments in light of

the applicable legal principles, we affirm in part, and reverse and remand in part.

I.

We glean the following facts from the trial record. In May 2016, HUD

offered for sale a residence at 61-63 Scheerer Avenue in Newark through its

Good Neighbor Next Door (GNND) program. The purpose of the GNND

program is to improve the quality of life in distressed urban communities by

encouraging law enforcement officers, teachers, firefighters, and emergency

medical technicians to purchase homes in these communities at a fifty percent

discount. Since the property prices are heavily discounted, HUD's policy

requires that the purchaser be completely responsible for the customary six

percent broker commission. Consequently, all broker commissions resulting

A-4183-17T2 2 from GNND transactions require a private agreement between the purchaser and

the real estate brokers.

Plaintiff submitted a bid for the GNND property through HUD's website

on behalf of Craig McDaniel, a Newark public school teacher. Plaintiff testified

without objection that after McDaniel was selected by HUD's lottery bidding

process, he worked personally with McDaniel to purchase the home, which

"took five months to close." Plaintiff further testified that McDaniel needed to

reduce his student loan debt before he could qualify for a mortgage and plaintiff

"helped him get that qualification so he could buy the house." According to

plaintiff's complaint, he also helped McDaniel complete "HUD's standard

contract package," along with an alleged "private contract with [McDaniel] . . .

[executed on May 13, 2016,] wherein [McDaniel] was to pay [his] [six percent]

brokerage commission," which he sent to defendants prior to closing.

Plaintiff testified that listing broker "[c]ommissions are not guaranteed

and the listing broker may receive a modified, or reduced commission, or no

commission in the event an alternative disposition strategy is involved."

According to plaintiff, Federated Homes did "not present[] any proof . . . that

HUD agreed to change the commission so that [it] would get their listing

commission" in a GNND sale, which he asserts "was an alternative disposition

A-4183-17T2 3 strategy . . . used by HUD." Accordingly, plaintiff alleged that "[a]t the time

that [he] signed the [May 23, 2016 sales] contract with [McDaniel,] [McDaniel]

signed a commission agreement to pay [plaintiff] a six percent commission,"

which was "strictly a private commission agreement between . . . [plaintiff] and

McDaniel," because the agreement stated "'[t]he real estate commission is to be

paid to the broker' . . . [and] doesn't say 'to the brokers.'" Plaintiff emphasized

that Federated Homes was "not part of [the May 13, 2016] private agreement."

Plaintiff further testified that Federated Homes was not entitled to a

commission because "[t]he [May 23, 2016 sales] contract didn't show a . . .

commission being paid by HUD [to Federated Homes]." In arguing against

involuntary dismissal, plaintiff also stated that according to the sales contract,

"[plaintiff] was the selling broker," but "the only function [Federated Homes]

performed in this transaction" was that "the earnest money deposit had to be

given to [them]."

The May 13, 2016 contract acknowledged that HUD does not pay the

commission on GNND properties, and that it was McDaniel's responsibility to

pay the customary six percent commission HUD would pay if this were not a

GNND property. McDaniel was the only party to sign the contract, and the

contract makes no specific reference to plaintiff. The May 13, 2016 contract,

A-4183-17T2 4 nevertheless, states that the purchaser authorizes the lender to include the

commission in the mortgage or make the commission payment directly to the

"broker" at closing.

In the May 23, 2016 sales contract between McDaniel and HUD,

McDaniel agreed to purchase HUD's property located at 61-63 Scheerer Avenue

in Newark for $183,000. Lines 6(a) and 6(b) of that contract, which typically

indicate the amount of commission HUD would pay to the selling and listing

brokers, were left blank. The sales contract indicated that McDaniel's $1000

deposit would be held by Federated Homes, the closing would take place at

Collegiate Title's office, and plaintiff was the broker.

Collegiate Title's chief executive officer, Richard Ransom, testified that

typically, "[t]hroughout the transaction[,] [Collegiate Title] communicate[s]

with all parties," including HUD's representative, the brokers, and the lender.1

He also acknowledged that part of Collegiate Title's "standard operating

procedure" was that it "would go through each one of [the] disbursements" and

1 The parties agreed that Collegiate Title could call Ransom out of order during plaintiff's case-in-chief. As noted, the court dismissed plaintiff's claims at the close of his case pursuant to Rule 4:37-2(b). We are satisfied from reviewing the court's ruling that it did not rely upon Ransom's testimony when deciding defendants' motions and based its decision on the proofs offered by plaintiff. In any event, were we to consider Ransom's testimony, we would reach the same result. A-4183-17T2 5 "explain it to the buyer before he signs it," and it would obtain the purchaser's

signature on the closing disclosure, as well as "all the other closing

documentation."

According to Ransom, Collegiate Title received a commission bill from

plaintiff, in addition to a commission bill from Federated Homes claiming it was

entitled to $5490 upon disbursement of the mortgage funds, half of the six

percent commission McDaniel agreed to pay. Collegiate Title forwarded the

signed closing documents back to Annie Mac Mortgage (Annie Mac),

McDaniel's lender, who then authorized Collegiate Title to disburse the six

percent commission, $5490 to plaintiff and $5490 to Federated Homes.

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NEAL SILBERBERG VS. FEDERATED HOMES (L-7971-16, ESSEX COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-silberberg-vs-federated-homes-l-7971-16-essex-county-and-statewide-njsuperctappdiv-2019.