Walk a Kb or Two in my Moccasins- Nobody 'splained it to me like that!

Simple answers to Complex Questions and Complex Answers to Simple Questions. In real life, I'm a Greater-Toronto (Canada) Realtor with RE/MAX Hallmark Realty Ltd, Brokerage. I first joined RE/MAX in 1983 and was first Registered to Trade in Real Estate in Ontario in 1974. Formerly known as "Two-Finger Ramblings of a Forensic Acuitant turned Community Synthesizer"

My Photo
Name:

- Realtor (2nd or 3rd best you'll likely run into)
- Philosopher King of Real Estate Business in Ontario (self-assessed)
- Likes Public Policy & Governance Discussions
- Likes discussion on being an "Attestant" and First-Century Ecclesias(aka 'primitive congregations)

Sunday, September 12, 2010

Do I have any obligations to my agent once my listing expires

Q..... Do I have any obligations to my agent once my listing expires

From Zoocasa " Ask The Pros"

A.....
Robert Ede



Holdover Clause:



NB NB This same Holdover clause is written in the BUYER Representation Agreement



The "Holdover" clause continues the (original contract's) commission liability for a stated period after expiry(it's a fill-in-the-blank field).

It applies ONLY to any Buyer introduced to the property (or the owner) for the purpose of buying DURING the listing period;



UNLESS

-the property is re-listed with another registered real estate brokerage under a new listing contract entered into after the first contract's expiry date.



IN THE EVENT

that a formerly-introduced Buyer succeeds in purchasing the property (within the first listing's holdover period),



THEN the original Seller's commission liability to the original Listing Brokerage is reduced by the amount actually paid to the second Listing Brokerage for that same Buyer's transaction.



E.G. If Seller's 5% listing with Brokerage A expires and then Brokerage B re-lists the property and sells it to a Buyer formerly introduced to the Seller/Seller's property at a commission of 4% a few days after the expiry, then Brokerage A can claim the 1% difference.



BUT Brokerage A has to make a legal claim (likely Small Claims Court)AFTER the closing, prove the "facts" and then collect the money.



It's a Public Relations fiasco, but in blatant circumstances many Brokerages would pursue the claim.



NB The same Holdover clause is written in the BUYER Representation Agreement.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

Politics Blog Top Sites