Results 1 to 3 of 3
  1. #1
    Join Date
    Jan 2019
    Posts
    1

    Default Seller Broker Contract

    My question involves real estate located in the State of: New York

    In a listing agreement with a brokerage company (seller's broker), there is a clause that reads: "If you fail to close on the property, after a contract of sale is fully executed, then we shall be entitled to our full commission. "

    The first question I have is- is this standard to have such a clause in this type of an agreement?

    Second, I don't fully understand what "fail to close after contract of sale is fully executed" means. More precisely, does this include scenarios like a buyer is not approved for a loan, problems found with home inspection, a buyer not approved by the board (I am selling a co-op), etc. ? Or is it just limited to me backing out of the deal for one reason or another?

    Many thanks in advance for your answer!

  2. #2
    Join Date
    Jul 2018
    Posts
    1,173

    Default Re: Seller Broker Contract

    Quote Quoting Toughcookie
    View Post
    In a listing agreement with a brokerage company (seller's broker), there is a clause that reads: "If you fail to close on the property, after a contract of sale is fully executed, then we shall be entitled to our full commission. "

    The first question I have is- is this standard to have such a clause in this type of an agreement?
    A legally irrelevant question, but yes.


    Quote Quoting Toughcookie
    View Post
    More precisely, does this include scenarios like a buyer is not approved for a loan, problems found with home inspection, a buyer not approved by the board (I am selling a co-op), etc. ? Or is it just limited to me backing out of the deal for one reason or another?
    The language you quoted says "If you fail to close." Therefore, it would not encompass failure by the buyer to go through with the sale.

    1. Sponsored Links
       

Similar Threads

  1. Agents and Brokers: Terminating a Contract With a Real Estate Broker
    By mouln in forum Buying, Selling and Conveying Real Estate
    Replies: 4
    Last Post: 08-17-2015, 11:29 AM
  2. Agents and Brokers: Seller-Buyer Broker Hired a Non-Licensed Electrician to Do Electrical Work
    By psalm10720 in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 10-15-2011, 08:11 PM
  3. Pets and Animals: Can a Puppy Broker Make You Sign a Contract for Dog It Doesn't Own
    By lucysmom in forum Personal Property
    Replies: 1
    Last Post: 04-24-2011, 11:47 PM
  4. Broker did not mention he was the seller
    By onzy1331 in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 01-27-2007, 12:53 PM
 
 
Sponsored Links

Legal Help, Information and Resources