In the case of buyers, the Holdover clause applies to real estate that you have put in place during an agreement. Your question is about the overrun clauses, which are an important part of many list agreements. The retention period is a defined period after the expiry of a list agreement during which the stockbroker would be entitled to a commission if the property was sold to a person who was approached to him during his listing. It is not clear if you intend to continue selling your property, so let me explain how the Holdover clause may affect you after the current list contract expires. At the time of the sale, no matter how the buyers were introduced into your home or why they came to see the property. Whether they moved to an open house, responded to an ad or even, if they were known personally and expressed interest, the over-indictable clause could still apply. First, kudos for time to read in depth the chord. Too often, buyers and sellers don`t take the time to understand what they`re signing. Your agreement with the real estate agent is a binding contract. For something as important as a real estate transaction, it`s not to be taken lightly. Read the contracts you are about to sign very carefully, and if you are not sure, ask.
Real estate documents are legally binding contracts and it is essential that you be very clear about what you are signing. Talk to your lawyer if you are not sure. The duration of the MLS list contract and the length of time you are held. However, if you were presented to the buyer at the expiry of your offer agreement, you are not subject to the Holdover clause in this example. Well, just as a broker wants to be paid for the work they did to find a buyer, the seller might not want to pay brokerage for a buyer they found themselves. For example, a seller has sometimes already spoken with a potential buyer who has expressed interest before being listed – perhaps a neighbor, friend or relative who has always wanted the house. In this case, the seller will want to discuss with the broker the commission to be paid, if the property is sold to that buyer. This type of transaction may be an exclusion from the listing agreement, or another commission structure may be attached if that person purchased the property. For sellers, the deciding factor is the simple exposure of the listed property to the subsequent buyer.
It does not matter why the visitor looked at the property or how he or she was introduced to it. If the buyer had previously expressed interest and purchased at the expiry of the list of offers, the broker may ask for a commission.