Daily Real Estate News | October 29, 2007
Court Allows Bankrupt Foxtons to Sell Listings
A federal court decision last week cleared the way for real estate companies to purchase thousands of New Jersey and New York property listings held by bankrupt discount brokerage Foxtons.
Rahway, N.J.-based Maplewood Homes will buy more than 3,400 New Jersey listings for $100,000, while Brooklyn, N.Y.-based Fillmore Real Estate is spending $110,000 for hundreds of listings in New York.
When the West Long Branch, N.J.-based Foxtons filed for bankruptcy, it sought to sell its listings, but nearly 30 homeowners asked the bankruptcy court to void their contracts so they could sign agreements with other real estate practitioners.
But the bankruptcy court ruled that Foxtons customers who signed a three- or six-month contract would be customers of Century 21 Atlantic Realty, which has agreed to market the New Jersey homes for Maplewood, or of Fillmore Real Estate, which will market the New York homes.
When Foxtons was founded in 1999, its associates were paid salaries and customers were charged 2 percent. Eventually, commissions were raised to motivate agents to show Foxtons' homes. A private-equity firm bought the company in May.
Source: The Associated Press (10/27/07) |
