I learned a new legal term this week thanks to a LinkedIn discussion. While Realtors® cannot give legal advice, there are a lot of laws that we need to know and abide by. I knew that the issue being discussed was not legal but I didn’t know it had a special term.
I love it when I learn something new!
The term I learned is “Tortious Interference“. So what does it mean to interfere with someone’s “tort”? 
Here’s what Wikipedia says:
Although the specific elements required to prove a claim of tortious interference vary from one jurisdiction to another, they typically include the following:
1. The existence of a contractual relationship or beneficial business relationship between two parties.
2. Knowledge of that relationship by a third party.
3. Intent of the third party to induce a party to the relationship to breach the relationship.
4. Lack of any privilege on the part of the third party to induce such a breach.
5. Damage to the party against whom the breach occurs.
Now you’re probably wondering what on earth this has to do with real estate. The term was referenced in a discussion about buyers asking for a portion, or reduction of, the commission that a seller agrees to pay the listing broker and Realtor®. Once in a while, a buyer may think that if they don’t use a Realtor® that they can expect to receive, or get a reduction to, the co-op portion that the listing broker may pay a buyer’s broker for helping to sell the home.
The Listing Agreement is a Contract between the Seller, the Listing Broker, and the Realtor® representing the broker. (That’s item #1 in the list above.) The Seller has contracted with the Listing Broker to market the home and to find a “ready, willing and able buyer for the home whether or not the buyer chooses to be represented by a Realtor®”.
I knew that the terms of one contract can’t be negotiated with the terms of another contract, i.e. a Purchase Offer that attempts to negotiate the terms of the Listing Contract. I just didn’t know it had a fancy legal name or that there might be legal consequences for the buyer.
So here’s a heads-up. If you’re a buyer considering asking a listing Realtor® to reduce their fee to the seller, you may want to discuss with your attorney to see if “tortious interference” applies in your area.
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