Termination of Listing Agreements
Imagine your Listing Agreement expires today and the Seller is relisting with another Broker tomorrow. Then imagine you receive a call from an interested Buyer. What should you do?
Under the Exclusive Right of Sale Listing Agreement, unless you are able to procure a contract on the final day, the new Broker has the right to continue negotiations with the Buyer you met and present the Seller with a contract. In fact, Article 16 of the Code of Ethics strictly prohibits you from negotiating the sale of the property when you know the property is listed with another Agent. The right thing to do is call the new Listing Agent and explain the situation to them. A reasonable Agent should be willing to share commissions. The wrong thing to do is to continue working on the sale, which may result in a Code of Ethics Violation.
The information presented in this “Tuesday Takeaway” is intended for informational purposes only. This information should not be used as legal advice applicable to a specific situation. In addition, our provision of this information to an individual in no way constitutes an attorney-client relationship.