The purpose of paragraph 3A2 of the RLA is to allow agents/brokers to collect a commission after the expiry of the listing agreement if the seller has finally sold to (i) a potential buyer who has physically entered the property or (ii) made a written offer during the listing period. If you are reviewing the list agreement with your agent, read point 3 on page 1 of 5 of the California Residential Listing Agreement in detail. The latest version is: paragraph 4 – term. This is the period during which your agent represents you. Keep in mind that this agreement is the “exclusive right to sell.” If you sell your home to someone during this lifetime, your representative is entitled to the agreed commission. Paragraph 3 – list price. Mostly self-explanatory. That`s the price you promote for the house. That`s not to say that`s what a buyer is going to offer, or what the final price will be, but it`s your starting point. Read my guide for more information on how I recommend choosing a good list price (usually as close as possible to the fair value of your home). It should be noted that even in the context of the cancellation itself, there may be reservations that you, as a seller, may be required to pay some or all of the originally agreed commission. This issue should also be discussed at the time of listing and agreed by mutual agreement between the seller and the agent/broker.
There is an exception if you accept in advance certain people who are excluded from this agreement. For example, you may know that your uncle wants to buy your home, but still his lender`s rightful hope. You may want to list the house on the market, but you don`t have to pay the commission if your uncle passes. They would put his name in the Addendum Named Exclusion and add it to this list agreement. After an offer ends and the seller refuses to renew, the listing agent can send a list of people who have looked at the property while they are listed on the market. These are buyers that the Inseranter has “found” and is therefore entitled to a commission if the buyers buy during the protection period. Many agents will not understand the period of protection and probably will not send a list of buyers after the end of the offer. I don`t usually do that. If the seller wants to continue, it is best to let them go and make a fresh start with another agent.
You may have changed your mind and decided not to sell your home. Maybe you didn`t manage to get out of the state you were sure to leave. Maybe your agent is doing a poor job and you want another agent. Maybe you`ve decided to rent it, or let your aging parents live there instead of selling. There could be many reasons, or no reason at all. You may want to terminate the list contract. This prevents a seller from refusing a good offer during the offer period and accepting the same offer with the same buyer at the end of the bidding period, in order to avoid commissions. “If, on calendar days (a) from the end of the list period or an extension, (b) following a termination of this agreement, unless otherwise agreed, the seller enters into a contract for the sale, sale, sale, lease or other transfer of the property to third parties (“PROSPECTIVE BUYER”) or to the related person: (i) who were physically entered and denounced during the listing or renewal period by a cooperating broker or broker; (ii) for the cooperating broker or broker, the seller made a signed, written, purchase, lease, exchange or obtain an option on the land. Remember, half of this amount is promised to the real estate agent broker in paragraph 8, so in my case, both brokers will receive 3% and 3%. What if, for some reason, the buyer does not have an agent? First, make sure you understand the situation and whether your agent is now acting as a mediator. Secondly, you are still technically on the hook for the 6%, but everything will go to the brokerage of your listing agent.