What Is The Holdover Period In A Listing Agreement

Therefore, only if the re-registration with another broker and the commissions payable under the new registration agreement are equal to or greater than the commissions payable under the previous registration agreement, no commission will be paid to the former registration real estate agent. That is, if, after the end or expiration of the registration period with a broker, the seller re-registers the property with another broker and during this period, which falls during the retention period of the previous listing contract, an offer to purchase the property is accepted by a seller or buyer who was introduced into the property during the previous listing period. must be paid as commissions to the former listing real estate agent if the commissions payable on the new listing real estate agent are equal to or greater than those that would have been payable under the previous listing real estate agent. However, if the commissions payable under the new listing agreement are lower than the commissions payable under the previous listing agreement and an offer to purchase during the retention period specified in the previous listing agreement was accepted by a seller or buyer introduced into the property during the previous listing period, then the difference in commissions, which exceed the commissions payable to the new registration real estate agent. should be paid to the former registration real estate agent. If, for example, commissions of 4% of the purchase price were to be paid in the new listing agreement and commissions of 5% were to be paid in the previous listing agreement, the seller would be required to pay the former real estate agent 1% of the purchase price plus applicable taxes. The hold clause generally does not apply if the seller displays himself during the retention period with another broker who charges the same commission or a higher commission – therefore, there is no risk of undercutting the original agent. Our registration contract is approaching the expiry date of the contract. We do not intend to extend it. What should we know about the holdback clause in our contract? This period of stay could last 30 days, 300 days; It just depends on what you and your broker have agreed. It was found that the buyer had shown the property again during the listing period, so the court concluded that the 5% commission was payable to the agent as the hold clause was in this regard. Let`s say you signed a listing contract with a real estate agent and your home was shown or presented to buyers, but it wasn`t sold when the listing expired. You can then choose to sell privately, but if you sell your home to someone who saw it while it was listed during the period of stay, you could still owe commissions to the original brokerage company.

If you register with another broker for an equal or higher commission amount, maintenance generally does not apply. Don`t forget to check the terms of your agreement, as the holdback clauses may vary. If you are concerned about the holdback clause or any other aspect of your agreement, discuss it with your representative, manager or official broker of the reference broker. .

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