Family with two small children contacted a real estate broker. They signed a buyer broker agreement.
In the walk-thru they discovered black mold, and backed out of the deal. The broker demands his commission of $12,000. And is threatening to sue.
The attorney for a TV station said you do not have to sign the buyer agreement in the first place. Many brokers will work without it. However, if you are selling, you need to sign an agreement. Because the broker is spending monies to advertise your house and wants to be compensated.
This is Florida. I wonder how it is in other states.

Foolish to sign an agreement without seeing what you are buying, but I would let him sue and counter with FRAUD (legal fees included) if he did not disclose any hazardous condition. Often discovery of such conditions can be a leverage in a negotiation for a better price from the seller.

Most courts frown on these tactics by sellers, and brokers, even in Florida. Much depends on the actual signed contract, but it may be illegal in Florida, as well as in many states to even bind a signer to an unseen agreement, but a lawyer is worth consulting.

Very good advice

I agree with talaniman... its not like they backed out just because they got cold feet. They backed out of what is not an insignificant issue. And If the buyer saw it during a walkthrough... its impossible the seller didn't know it and failed to disclose it.

Did they pay to have an independent inspection done prior to it going any further? One THEY hired. If they did the inspector should and probably could be held liable for missing the obvious. If they didn't that was extremely foolish on their part.

Let them try and sue... counter as talaniman suggests... have lots of photos, and I would suggest having a professional firm come in... diagnose the extent and have an estimate for repairs done. With that backing them, the lack of disclosure... they are sure to win any case.

Yes. It reminds me years ago. Auto dealer wouldn't let you take the contract home to read. He said he was forbidden by his boss, to take the contract away from the dealership.

Without knowing the terms of the agreement they signed. Its hard to answer. If they agreed to buy the house then backed out, they may be in trouble even if the house is defective. If they just signed an agreement to have the broker act for them, maybe a different matter.

Update: part of the $10,000 deposit has been returned to the young couple with two infant babies. But the rest has to be released by the broker.Maybe because it had been on TV news. Thank for the advice

I would never hire a buyer-agent. The agent showing houses for sellers is required to tell you that he represents the sellers, but it's in his interest to do right by buyers. And you have an INSPECTION for some hundreds of dollars. You study the comps the agents can give you. You ask around. You sit out front checking at rush hour. You study the neighborhood. You learn about houses and construction. You walk around with the inspector and ask questions.

What exactly is this buyer broker agreement, merely a contract that they will only buy house though this broker. There are some highly exclusive brokers that may do this, and some will ask for it, (if people foolish) enough to sign, But normally they are either for a fee, or for a commission is and when a house is purchased. There should be lots of clauses, that allow a buyer to not buy, (they would be listed in a contract for sale, that would be signed. So, tell them to sue, If I had a 100 dollars for each time someone threatened to sue me, I would be rich.

Yes Joy the young couple found the broker in a magazine.They are both 21 years old.
With two babies.

I'm glad that you help so many people around you. True pastor!