Home Selling in 07730>Question Details

Joanne Keegan, Home Seller in Hazlet, NJ

90 expiration clause

Asked by Joanne Keegan, Hazlet, NJ Fri Oct 10, 2008

I am asking about the expiration clause that states, after so many days after your listing expires ,is it legal to put 90 days there? My other realtor put30 days, I thought that was standard.

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Answers

8
Hi,

The expiration clause, or protection period, can be any time period from zero to 365 days. There is often a correlation between the amount of marketing that a broker does for the seller and the length of time of the protection period.

Sellers who insist on a short expiration period will usually draw question from the Realtor about why. As the earlier posters have explained, if a seller relists the property with another Broker, the expiration clause is automatically terminated. This clause only applies when the property is not relisted, and a buyer who saw the property during the time it was represented by the named Broker contracts to buy the property after the listing contract expires.

Often, 30 days is considered to be unreasonably short by Brokers. It would be easy for unethical buyers and sellers to wait it out to Day #31, and execute a contract. By and large, most people are honest….and that probably holds true within real estate as well as other industries. Unfortunately, our law books are thick with rules because of the actions of a few. The same holds true in real estate. The dishonest few are the reasons we have fine print in contracts. If you have a Broker who invests little into marketing the listing, he/she will probably be willing to keep the expiration period quite short. If the Broker has invested heavily in the marketing of your property, chances are there will be a higher expectation of a longer expiration clause/protection period.

I have heard sellers boast when they achieve short listing contracts, or short protection periods. In instances such as this, I have also noticed the Broker has minimized investment and risk on the property, The boastful seller may have lost far more than he/she gained in their negotiations.

What I suggest is that a seller engage a listing contract with a protection period of reasonable length, have details about the services and representation be drafted into the contract, and have a termination clause, if, indeed, the Broker fails to deliver. Sellers typically are apprehensive of getting stuck in an undesirable or unproductive contract. We have found that this type of arrangement with clear details, and an escape clause for non-performance delivers a win-win for all parties.

Best of Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey
1 vote Thank Flag Link Fri Oct 10, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
A realtor can put anything there. As stated before, some put zero, others put up to a year. And it is void if you relist with another broker. This term after expiration, as with everything else, can be negotiated. Hope this helps :)

Jillian Mason
Web Reference: http://www.jillianmason.com
1 vote Thank Flag Link Fri Oct 10, 2008
Hi Joanne,
The listing agent may put any period of time they want in there. As with many other parts of the contract this is negotiable but 90 days is reasonable. If you sign a new listing agreement with another agency prior to the expiration date then it is null and void.

Thanks,
Heather Daccurso
Weichert Realtors
Office: 732-577-0440
Cell: 732-580-5309
0 votes Thank Flag Link Sat Oct 11, 2008
6 months is actually average. as any part of the contract it is negotiable, however it is a protection for the realtor so someone does not knock on teh sellers door, the sellers says hey my listing expires in acouple of days, come back and we both can save some money and cut out the realtor. and yes people try it alot however that clause always comes back as a savior. 30 days in extremely rare.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Oct 11, 2008
A listing agreement is a contract. Your REALTOR should have discussed this with you prior to entering any time period in that broker protection clause. Just as commission fees are negotiable, so are the broker protection periods.
0 votes Thank Flag Link Sat Oct 11, 2008
Joanne, particularly in this market, 180 days would be average. With the amount of time, money, and effort we invest the sale of a property, it would only be fair.

IMHO
0 votes Thank Flag Link Fri Oct 10, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dear Joanne,
It's also not unusual to put 180 days from the date of expiration. However, if you re-list with another real estate firm that clause is null and void. If you don't list with another company and that buyer chooses to come back to purchase your home, the listing agent should be entitled to the agreed commission. Afterall, it was due to their efforts that the buyer came to begin with. Patience is a virtue in this market. Best of luck to you.
0 votes Thank Flag Link Fri Oct 10, 2008
Typically, that statement means...if someone who has seen your house through the efforts of the listing agent, and then comes back to purchase it after the listing has expired but BEFORE it is re-listed with someone else the original realtor is protected. In that case, 90 days is not unheard of.

There should be no limitation on you re-listing your home with anyone; and if you do, then that new realtor is in charge and reaps the benefit if an old buyer surfaces.

Great question - I hope that helped you!
0 votes Thank Flag Link Fri Oct 10, 2008
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