Do I need to pay commission if MLS listing expired with 0 months entered in Clause 4?

Asked by Gautam, Dayton, NJ Mon Aug 16, 2010

I Listed a home with the real estate agent in Middlesex County on MLS clause no 4 for Broker protection reads " The above commission shall also apply if the property is placed under contract of sale or lease 0 (Zero Months) after the expiration or termination of the agreementwith another broker at the time the property is placed under contract or leased.
A commission of 0 Zero would also due if the premises are sold to a tenant for which rental commission was payable to the broker.
In view of above can I sell the property to the client who had seen the property before and made the offer and I rejected it.

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John Sacktig, Agent, New Jersey, NJ
Mon Aug 16, 2010
Technically you can sell the house to those people since there is a zero in that space.

But, how do you feel as a person to do so? And if you can live with it, do as you feel is right.

This happened to me "one time" but they were not my usual type clients. My clients work with me and understand the amount of work involved to create and complete a real estate transaction. Most people have a good level of integrity and would continue to work with the Realtor that has helped them get to that stage of a transaction.

As noted below, you should consult an attorney regardig your decision.

Good Luck!
2 votes
Mary Petti, Agent, Edison, NJ
Mon Aug 16, 2010
Do check with an attorney because there IS something called procuring cause and you may be liable, whether or not clause #4 says zero. If you don't re-list with another agent/agency, you may still be liable to pay the listing agent AND the buyers agent since it was shown to the buyers during the listing agreement and these people already showed interest in the house.

However there are a few things. If you were NOT unhappy with your agent, just unhappy with the inital offer these buyers made, and now want to sell it to them, why not just relist with your agent, and get the contract drawn up by the buyers agent. After all,even tho there is a zero in the clause, did your agent work for you during the listing period and get you a contract that YOU rejected?

Also, I am assuming the buyers also had an agent, who wrote the initial contract you rejected, so you would be cutting out two agents and their source of income. If you can live with yourself knowing that you did this, then go ahead and sell it to the buyers if your attorney advises you that you aren't liable for commission. But IMHO, I think this stinks.
1 vote
Scott Godzyk, Agent, Manchester, NH
Mon Aug 16, 2010
In most cases if you relist with another broker after expiration you do not owe the former listing broker anything so that would be 0 hower the listing agent either overlooked and dint know what this clause meant as far as selling to anyone they showed or any tenant, usually it is 3 -6 months depending on the agents office policy.

To be sure you can always have an attorney review it using their free first visit to get some direction. If you do not want to do that just make sure everything is at 0 so you will not owe any commission if sold to this former potential buyer. good luck with your sale
0 votes
Ian A. Wolf, Agent, Morristown, NJ
Mon Aug 16, 2010
Typically, the Broker protection applies for a predetermined period of time, we use 90 days. Based on what you are describing it sounds like there was no period of time. Without seeing your agreement it is hard to understand exactly what it says. Check with an attorney, or try contacting the Middlesex MLS to be sure, but it sounds like broker protection may not apply. However, if it does, be careful about intentionally waiting until the period expires before making the deal. That can be fraud. We just had a client try to do that and we had no issue legally getting paid our commission because of the fraudulent attempt. I do want to stress contacting an attorney to be sure here. Additionally, you may want to work something out with your previously listing agent to still represent you in the transaction for a negotiated fee(after all, their marketing did produce your buyer). That representation could be invaluable in getting you the best deal and making sure the transaction goes smoothly. Hope that helps.
0 votes
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