What happens to 'holdover clause' in broker contract if I list FSBO or with another broker?

why are you even worrying about this

you should worry only about getting a sale.  let the brokers fight it out if there is an issue.
not your concern.

your job is to go to open houses to make sure it is priced right, stage it well, make sure you have a rebny broker marketing it well with good pics and floorplan and open houses.

brokelin

in Real Estate - Sales 13 years and 9 months ago

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ari11210 | 13 years and 9 months ago

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I am in an exclusive contract with a broker which states that they would be entitled to a commission after the contract expires, if the buyer saw it when it was listed with them. I understand this is standard. What happens after the contract expires and I were to list with another broker or FSBO? Would original broker still be entitled to commission? Does it make a difference if its for a lower price? thanks for your help.

bkmatthew | 13 years and 9 months ago

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My understanding is that if your current broker can establish that the buyer saw the property while it was listed with them, they can claim a commission. This is one reason why brokers keep sign in sheets for open houses. If you’ve ever read one of those sign in sheets it also binds buyers to the showing broker unless they sign in with a broker.

nwilcke | 13 years and 9 months ago

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does your contract specify a “tail period”? A well-drafted brokerage agreement should say that, if a sale closes within x amount of months after the exclusive agreement with the broker expires, and the buyer saw the property during the term of the exclusive agreement, then the broker gets a commission. the sale price is irrelevant unless the agreement says otherwise.

slopegirl | 13 years and 9 months ago

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I think your Q answers itself. If the buyer saw with original broker, they get a commission. Not the brokers fault if you only decide to go for a lower price once they’re off the property. Frankly, if you’re ready to lower the price, do it now. Waiting around for a good price doesn’t seem to work well for sellers in this market.

sandpiperapp | 13 years and 9 months ago

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Many things effect whether a commision is due. Your listing agreement is the contract that determines the owners financial responsibility to the broker. In general, Brokers do not earn commisions for “showing” real estate. They earn commisions for bringing about a “meeting of the minds”. Just because an apartment was shown does not automatically entitle a broker to a commision. There are a lot of different factors that determine wether a commision was earned. I suggest you bring your present listing agreement to a knowledgable attorney who specializes in real estate to determine your liability to your existing broker