Seller's broker stopped responding, what can I do?
I found a business I want to buy. Problem is their broker stopped responding and I let it go because of the shutdown, but I'm still interested in the business. It was removed from his brokers website (not listed under sold or expires listings). I believe it didn't sell because if he ignored other interested parties like he ignored me, the business owner must have assumed no one was interested and given up trying to find a buyer.
I signed an NDA and one of the points reads:
"Not to contact the owners, employees, suppliers, customers, business associates and competitors, except through the Broker."
Also says these terms are in place for 2 years. I signed it 5 months ago.
I'm still interested in the business itself and I'm wondering if I should bypass the (former?) broker and contact the business owner directly? Can I get in trouble because of that NDA?
- A.J.Lv 72 months agoFavourite answer
If you actually have contact information for the owner, you are bound to the NDA as literally written. The broker still would have to get his commission on a sale.
Read the details, but suppose you tell a friend to contact the owner with some details for the owner to contact you. Unless forbidden, you can give a friend the owners name and contact. The owner can contact you, unless he is bound by his own contract with the broker. By ignoring you, the broker is doing a good faith breach with the owner. Maybe the quality of your offer is not good enough. That is the broker's only "out" for the good faith breach with the owner.
I am not a lawyer nor offer legal advice. I am explaining what you have written and a path within what is written in the question, like a solution of a puzzle.
- StephenWeinsteinLv 72 months ago
Nothing. You cannot do anything. If you bypass the broker, you will be violating the NDA and the broker will sue you for a lot of money. If the broker won't respond, then you can't buy the business.