What Happens If A Listing Agreement Has A Carryover Clause

A real estate agent should consider presenting the seller with a one-party listing agreement to protect the commission if they find an open listing or FSBO property they want to show. The Agent and seller may negotiate the number of days, weeks or months to which the clause applies. One caveat: “Often,” Edgar notes, “the wording [in the listing agreement] says that a commission is always due unless [the seller] has entered into another agreement.” Finally, if you terminate a contract with one agent and then immediately sign with another, your first agent is perfectly entitled to say that his skills helped you close the house. If, after three months, the exclusive listing contract expires and the house has not been sold, the seller or agent may decide not to renew the contract. The seller may want to work with another agent or the agent may find that the house is unlikely to be sold and not worth their time. If you are a broker working with a seller, you must ensure that a safeguard clause is included in your offer agreement. This ensures that you receive fair compensation for the work you do, even if a sale is made after the contract expires. First, check the expiration date. When you get to the end of the deal, you can easily switch agents (the duration of the deal often depends on how quickly homes in your area are sold). But if your agreement is still valid and you want to end it sooner, you`ll need to do your due diligence to find the best way forward. If your agent refuses to exclude you from the agreement, talk to their supervisor – who is usually a broker, team leader or broker manager – and explain the situation. They may be willing to assign you another agent on the team so they don`t completely lose your business.

The sign-up agreement contains a lot of details, and Edgar says you shouldn`t hesitate to go out straight and ask, “When does the contract end? When it ends, how much longer am I forced to pay? If I award a new contract, am I still obliged to pay? With respect to the aforementioned “transfer clause”, the purpose of this clause is to protect the agent`s marketing efforts. If someone looks at the house during that listing agent`s registration period and you do not relist the house with another agent after it expires, that agent will be entitled to the agreed compensation in case the same buyer decides to return and purchase the home within that deferral period. .