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”
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;
-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.