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!