Legal Blog:

Direction

You are acting for a vendor on a real estate transaction. The vendor has signed a direction irrevocably directing you to pay the commission owing on the sale from the sale proceeds. This direction is contained either in the agreement of purchase and sale or in a separate document, a copy of which has been given to you. The deal closes and your client, the vendor, directs you to ignore the previous “irrevocable direction” and to pay none of the sale proceeds to the agent. What do you do?

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