Vendor Commission Denial Due to Undisclosed Permit Violation

A vendor, acting as an intermediary for the sale of a building, brought an action against the purchaser for payment of the agreed commission after the sale was finalized, but the purchaser refused, claiming the vendor had not disclosed crucial information regarding the building's condition, specifically a building permit violation. The court of appeal upheld the dismissal of the commission claim, finding that the vendor, having the professional obligation to inform the buyer of all material facts related to the transaction, breached their duty by failing to disclose the existence of the permit violation, which constituted a failure in their obligation of loyal execution of the mandate, thus justifying the purchaser's refusal to pay the commission.