Ontario Civil


Agency

REAL ESTATE AGENTS AND BROKERS
Where contract was illegal, no action could be brought

Plaintiff claimed amount of $21,000 for introducing defendants to buyers who purchased defendants’ home. Defendants denied liability asserting they never agreed to pay any fee or commission to plaintiff and any arrangement contravened Real Estate and Business Brokers Act, 2002 (Ont.). Plaintiff held herself out as mortgage agent. She was not registered real estate broker under Act. Plaintiff had female defendant sign fee agreement which provided for payment of commission on sale of house. Male defendant did not sign agreement. Action dismissed. Plaintiff was trading in real estate, and therefore came under terms of Act. Plaintiff could not recover introduction fee or any remuneration without first being registered under Act. Any contract or arrangement upon which plaintiff based her claim was prohibited, and therefore illegal. Where contract was illegal, no action could be brought and party to such contract could not recover even on unjust enrichment or quantum meruit. Plaintiff’s claim was statute-barred under Act.

Moore v. Morad (Apr. 17, 2013, Ont. S.C.J., J. Prattas D.J., File No. Toronto SC-11-123025-00) 227 A.C.W.S. (3d) 917.

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