Dispute: HomeLife/Cimerman Real Estate Ltd. (HomeLife) sought a commission of $42,145.14, claiming it represented the purchaser, Mehdi Ajorlou, in a real estate transaction for Unit 1502 at Liberty Market Tower in Toronto. Liberty Market Tower Inc. (Liberty) argued it already paid the commission to another agent, Frank Nejad, based on a conflicting claim of representation.

Key Facts:

• A Buyer Representation Agreement between HomeLife (via Saeed Ahmadipour) and Ajorlou was signed in January 2020.
• Confusion arose when Nejad's name was recorded as the representing agent during the transaction, despite objections from Ajorlou.
• Liberty initially acknowledged Ahmadipour as Ajorlou’s agent and initiated steps to correct the record but later reverted to recognizing Nejad, citing reliance on a Real Estate Council of Ontario (RECO) decision.

Legal Issues:

1. Liberty claimed no binding contract existed with HomeLife.
2. HomeLife asserted it fulfilled the necessary criteria for the commission under the Cooperating Broker Referral Agreement.
3. Liberty relied on a RECO letter to justify payment to Nejad.

Court Findings:

• The court held that Liberty was bound by the actions of its agent, Baker Real Estate Inc., which communicated with HomeLife on Liberty's instructions.
• Binding Agreements:
  • Liberty agreed to change the agent of record to Ahmadipour as per communications with Ajorlou.
  • Liberty’s instructions to Baker and subsequent actions established a binding referral agreement with HomeLife.
• The RECO decision did not authorize Liberty to breach commitments made to HomeLife and Ajorlou.
• Liberty’s payment to Nejad was unauthorized, and no valid agreement existed between Nejad and Liberty at the time of the sale.

Judgment:

• The court ordered Liberty to pay HomeLife $42,145.14 in commission.
• Costs of $13,958.26 on a partial indemnity scale were awarded to HomeLife.