This is where the seller is permitted to sell the property himself w/o commission to the broker/agent, right?

Never had one of these come up and guess what? We have no forms for this type of listing. Isn't there supposed to be a special form? I've jury-rigged a standard agreement, but it's pretty hacked up. AND, I don't think it covers all the things that could happen, either.

Anyone with any experience with these? Tks.

Locally: A Exclusive Listing , as opposed to a MLS Listing,(which locally is an offer of sub-agency), is one where the listing broker is unwilling to co-broke with other brokers or share any portion of his earned commission on that particular listing.

Any agent considering presenting an offer on such a listing, would be advised to ensure that the exclusive listing broker would be willing to enter into a written agreement to co-broke (Standard Form) and with the commission payable specified and that such agreement was in place prior to presenting any offer.

The local MLS does not accept "Exclusive Listing" as they are contrary to the terms of the local MLS System.

Locally: means within the legal jurisdiction of the writer as noted below.

Devil's Advocate,
I don't know what you're talking about considering you are in Canada and the laws are much different from state to state, nevermind a different country.

DueDiligence,
You are talking about an "Exclusive Agency" listing. This is where you are the exclusive agent to the listing, but if the seller finds their own buyer they do not owe you a commission. I believe that the agent still must have a commission co-op to any cooperating agents that get involved. Basically, the seller does not have to pay commissions only if they find a buyer themselves. Open Listings are listings that the seller is only committed to pay the selling broker (whoever brings the buyer). There is no seller representation in this one.

also...just fyi...if you're "jury-rigging" a legal contract, I believe that would be considered practicing law...if you're not a lawyer, that's illegal (at least in FL, anyway). I'd be pretty concerned, though considering you yourself called it "pretty hacked up"...

Just be careful with it.

Thanks 007-- Exclusive Agency, exactly.

I would think that because our Association and State forms have no contract in our libraries for this, it's possible that it's frowned upon?

Anyway, we've decided it's best to pass on the deal!

Helpful information from all, thanks.

You still haven't said what state your in.Different states act under and are found upon different laws.In the us for instance some states are derived from a french origin and others from english.

The first step is to find out if this kind of agency is allowed in your state.The second step if you are not the principle broker and are working for a company is to find out if your company allows that type of agreement,if they don't you can't do it even if you wanted to.

For example in GA dual agency is allowed where you represent both parties,but for litigation reasons our brokerage does not allow dual agency.

Personally I don't like the agrrements where the owner can sell it themsleves,it leaves it open to claiming they showe someone the property to not have to pay your commission and then a dispute arises between the agent and the seller.

If they have someone specific in mind put those people down in the contract and give them so much time to buy the property and close on it,example one month.Most of the time it is a bluff by the seller.

I personally only do exclusive right to sell listings and nothing else.

In our state we do have three types of listing agreements, and one of them is Exclusive Agency; however no contract forms were found for it.

Changing the terms of a contract by striking out or inserting verbiage or drafting addendums is perfectly acceptable if agreed to by the parties, and changes to the contract verbiage is initialed. We do not need to be attorneys to make or permit these changes in our state; our license grants us that scope.

But, as I wrote before, we decided, even though the broker said, "sure", not to take the listing. I think for me it will be a policy to do nothing other than Exclusive Right to Sell listings, period. There were too many variables to Exclusive Agency regarding the potential actions of the sellers, too many possible scenarios to adequately address and protect ourselves-- not only for loss of commission, but other potential issues.

I agree with the poster who said that potential buyers could be identified by the sellers as exempt from a commission owed if sold to one or any of them, and we tried that approach. I seemed reasonable, but no go. It was way too open-ended for us.

Sorry, Due Diligence if I misunderstood your question.

Does your question relate to your firm, taking a listing in writing ,from a seller who will actually be in competition with you to sell the property himself, should he find and ready and willing buyer and thus avoid paying your firm a commission?

In that case, my question would be who needs or wants that kind of competition? Also those types of arrangements have a nasty habit of ending up in litigation as to who and how the buyer was actually found.

But, if the seller had previously been negotiating with a prospective buyer or buyers who may yet submit an offer, then the seller might consider entering a regular MLS Listing, with an addendum to the effect that if the property was purchased by (the named prospective buyers) on or before (date) then no commission would be payable.

Kind of levels the playing field a bit.

Locally: means within the legal jurisdiction of the writer as noted below.

In New York there are basically 3 types of listing agreements: Exclusive Right to Sell, Exclusive Agency and Open. The various boards have their own versions of the Exclusive Right To Sell (a commission is due the listing agency even if the seller finds his own buyer) forms. Some, I don't think all, boards also have their own version of Exclusive Agency (commission due only if sold by a licensed real estate agent) forms. I don't know of any board providing an Open listing form; they seem to be unique to each agency that uses them.

With regard to marking up a board form listing contract there is more to this then just crossing out, writing in (other than filling the provided blanks) and getting it initialed. To avoid the issue of "practicing law" the form also needs language to the effect of it being a legally enforcable contract and if not fully understood by either party they should consult an attorney.

DA, thanks so much. It was your first post that really helped me examine and think about all the possible nasty situations that could arise when agency isn't really clearly defined or could be very fluid.

A few points I looked at was: (1) If the sellers found their own buyer, could we cancel the listing agreement upon that notification? Would we be violating our duty to the seller by cutting him loose? Maybe. (2) What if the seller actively inteferered with, sandbagged or stonewalled legitimate offers we might bring hoping to find his own buyer? Could we cut him loose? Probably not. (3)What if we brought say a full-asking price offer with no contingencies and the seller tells us he's already working with his own buyer? There was also the potential as you pointed out, of involving innocent other agents/brokers because of an MLS offer, in something horrible.

And so, the list of what if's got longer and longer, and the deal started looking worse and worse.

Mr. F., thanks, but you're losing me with the "practicing law" stuff. It's possible that attorneys play a much larger role in NY during buying/selling. They are not a normal part of routine real estate contracts, title or closings here. Realtors do it all with the title company's invaluable assistance. However, we always advise clients to run things in front of their personal attorney for review, even if they say they understand fully.

Our MLS form explains both Exclusive and Exclusive Agency, and if it's and Agency is gets (A) after the commission.

Congratulations DD:

You have done what any true professional should do, which is to carefully analyze a given situation before taking any action, not after .