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Desperate In…, Home Seller in 08852

Broker protection clause question.

Asked by Desperate In Nj, 08852 Fri Sep 11, 2009

Our listing expired with Broker A. The listing had a 90 broker protection clause. At expiration, Broker A provided a list of names to exclude because they were shown our home by Broker A. After 30 days, we relisted our home with Broker B. If we sell our home (through Broker B) to one of the names listed in the exclusion letter we received from Broker A, are we obligated to the original listing broker (Broker A) for any commission?
Broker A insists that they are entitled to their commission and will sue us for it. Please help !!

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John Sacktig’s answer
Once your listing expires with buyer A - yes, there is a proctection clause that will protect the Broker from you selling your house to anyone that they have shown the house to on your own. As long as it is not listed with another agency.

The minute you list with Broker B.. (that can be day two after your expiration with Broker A ) and that buyer comes into that house with another agent, even a dual agent.. Broker A is not owed a commission.
2 votes Thank Flag Link Sat Sep 12, 2009
Why so desperate, desperate? If a buyer is found, why should you care by whom?

More to the direct point, MOST listing agreements state that for a number of days after experation, if a buyer comes forth who has been shown the property by the agent whose contract has expired, that agent will get a commission. This is mainly to keep from having buyer and seller collude to rob the agent of a commission, by waiting until just days after expiration.

Step 2 is that most listing agreements specify that the period is void upon relisting and that the new listing agency gets EVEN the buyer with the earlier interest. This also makes sense, because you certainly don't need two agencies negotiating different deals at the same time.

I’d read the listing contract carefully and see what it says about this. If you can get a new agency to list the property (I can see why you don’t want to work with the old one,) I’d just forge ahead. It is going to be rare for any of the buyers who did not move quickly to come in with an offer and even rarer for it to be a good one.

Go for it (and tell the old agency where to put their deal, which will probably be right next to where they have put their head.)

Best regards on this one,

Bill Holt
2 votes Thank Flag Link Fri Sep 11, 2009
Based on what you're saying here, No listing commission will be due Broker A because you relisted with Broker B. Please re-read your listing agreement to confirm this and of course if there are unusual or different circumstance not explained here, the answer could be different. As always, seek competent legal advice from a real estate attorney.

Joe Montenigro
Broker Owner
REMAX Home Team
Web Reference: http://www.hometeamNJ.com
1 vote Thank Flag Link Fri Sep 11, 2009
Carefully read the listing agreement you had signed with listing Broker A, it should clearly state what happens during that 90 day broker protection clause. If and when in doubt, contact a real estate attorney and let him/her double check for you. Better making sure beforehand! It should be clearly stated what happens when and how.
Good luck to you!
Edith Karoline - YourRealor4Life!
Working always in the very BEST interest of her clients!
Your Chicago Connection

PS by the way if you know of anyone who may be moving to the Chicago metro area or anywhere in Northern Illinois, send them my way and they will receive 1st class real estate service, I promise. Thks!
0 votes Thank Flag Link Fri Sep 11, 2009
If Broker A represented the buyers and showed them the property, they may have a claim to the cooperating commission (not the listing commission) often called the "co-op" or the "selling side" or the "buyer's side" of the commission.

Most likely, the buyers had thier own broker, not Broker A, in which case that broker would continue to represent the buyer and negotiate with you thru Broker B, your new listing agent.

Hope that's helpful

Joe Montenigro
Broker Owner
REMAX Home Team
Web Reference: http://www.hometeamNJ.com
0 votes Thank Flag Link Fri Sep 11, 2009
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