9. You are not entitled to any other form of compensation other than the commission or the flat-rate commission described above. For example, neither you nor any of your affiliates collect a fee to complete a home security application, the sale of my insurance coverage or recommendations. If you violate this clause and do not follow these instructions, you accept that such an act constitutes a self-exchange trade and that you at least agree to pay your full fee. One of the most important details of the property is the list price set by the seller, often based on the broker`s advice. There are two main methods for setting a catalogue price: a competitive market analysis and a formal evaluation. Competitive market analysis determines the price range of a property by comparing the property with recently sold properties of the same design, the same situation and other factors. In a formal valuation, a professional real estate expert determines the market value of the property, that is, the likely price a buyer would pay in the case of an arm-length transaction. A formal valuation is often required when the property is unique, making it difficult to find comparable properties that have recently been sold. Take a look at the safeguard clause in your list contract, there should be some time in which the clause is still in effect. Once that time has elapsed, you don`t usually have to pay list commissions, but it`s a good idea to consult a real estate lawyer before moving on. If the seller immediately enters into a new offer with a new broker, the clause should stipulate that the seller will only owe a commission to the second broker, even if the property is sold to a buyer produced by the original broker.
Other names: broker protection clause, extension clause, extendation clause, brokerage guarantee clause, withdrawal clause, purchase clause If you are a broker working with a seller, you want to make sure that a safeguard clause is included in your list contract. This ensures that you receive adequate compensation for your work, even if a sale is made after the contract expires. Listing agreements are employment contracts between sellers of real estate and real estate agents for the professional services of the broker. The listing agreement creates an agency and loyalty relationship between the seller and the broker, the seller being the client and the broker his agent. The broker usually has sellers who work for them to provide services that consist primarily of finding buyers for the property. However, the sellers work for the broker and not for the seller. Only the broker represents the seller. If a list contract ends and the seller enters into a new list agreement with another agent, it is important that the new agent informs the new agent of an extended clause still valid for the previous agent.