Real estate agents take pride in knowing the local market and can help businesses find the potentially most profitable locations for their specific type of business. A high-end company might be better able to locate the places where its type of goods is sought and use the broker`s footwork and retail sales data in certain areas. Most brokers do not object to adding a language to the listing agreement that requires the sale to be concluded before the broker has earned his commission. In addition, it is in the seller`s interest to extend this concept so that the broker is not entitled to any other costs, indemnities or refunds unless the sale is closed. For example, the seller would not want to pay the broker all or part of a lost count. The seller wants the broker`s cross-compensation to cover the broker`s failure to meet its obligations under the listing agreement as well as all claims arising from the broker`s actions that go beyond the broker`s jurisdiction defined in the listing agreement. And there is another problem that the seller must take into consideration. The broker may negotiate or collaborate with another broker representing a potential buyer. Unless a co-broker agreement is explicitly mentioned in the listing agreement, the seller will likely feel that the potential buyer`s broker will be compensated for the commission the seller pays to the seller`s broker. The seller will not want to be in a position where he will be sued by a broker representing the buyer, especially if that broker is exasperated by a disagreement over the sharing of the commission between that broker and the seller`s broker. The seller therefore wants the real estate agent`s indemnification provision to require the broker to indemnify the seller if a claim against the seller is claimed by another broker, provided that such a right does not result from the seller`s actions. .
. .Leave a reply