The real estate brokerage this week sued Eugene H. Rosen and Vivian Rosen of Palm Beach Gardens, saying they pocketed a deposit they were contractually obligated to share with the listing agent.
The Rosens listed their house last year for $3.7 million with Illustrated Properties, according to Zillow. In March, they hired Corcoran Group as their listing agent and lowered the price to $2.8 million.
This summer, the Rosens accepted an offer that included a $260,000 deposit, according to the lawsuit. The deal fell through, but the Rosens kept the $260,000. Corcoran Group, a unit of New Jersey-based Realogy Holdings (NYSE: RLGY), says the Rosens received the cash only because of its efforts to sell the property.
A couple of intriguing details: Despite evidence that real estate commissions are falling, especially for high-priced homes, the Rosens agreed to pay Corcoran a full 6 percent fee. And Eugene Rosen, 76, was licensed as a real estate broker in Connecticut a decade ago.
The Rosens’ 8,500-square-foot palace remains on the market, although with a lower price ($2.7 million) and a new real estate broker (Leibowitz Realty Group).