It is not uncommon for a property to be under contract before the expiry of the listed agreement, with a closing date expected after the expiry of the listed agreement. The Real Estate Commission`s sale agreement essentially provides for the renewal of the listing agreement for the conclusion of this transaction. Section 7.2.1 of the current registration form provides that the listing broker earns a commission on “each sale of the property during the reference period”. The term “sale” is a term defined in the listing contract. Section 3.5.1 defines sale as “voluntary transfer or exchange of shares in the immovable property or voluntary justification of the obligation to transfer an interest in the property, including a contract or lease”. [Emphasis added by author.] Therefore, if the property is under contract before the expiration of the listing, the listing broker has earned a commission. However, the commission shall be payable only until the closure of the transaction or until the misappropriation of funds by the seller referred to in point 7.3. The contract is a legally binding agreement that gives the real estate agent or broker the right to sell the house. There are different types of listung chords, but three of them are the most used. An exclusive right to sell listings is the most common listing agreement. Under this agreement, the broker has the exclusive right to market the property for a certain period of time.
If the property is sold while the broker has the listing, the seller must pay the agreed commission, regardless of who actually got the buyer. This limits any conflict with the seller over who is responsible for the buyer`s acquisition. An open ad is a non-exclusive contract. This type of list gives the seller or buyer the right to use any number of brokers as agents. During an open list, all contract brokers can market the property at the same time or search for real estate, but only the broker who brings the finished, consenting and competent buyer to the seller or who finds the desired property for a buyer receives a commission. However, if the client ends up buying or selling a property himself, he does not have to pay a commission to the real estate agent. For this reason, open listings are rare, as they offer the slightest certainty that the broker will receive compensation for their efforts. Sellers might consider an open list on an exclusive list of sales rights if there are a lot of buyers on the market. An open list can be negotiated separately with any real estate agent, and many brokers can bring buyers to the table. The only big advantage of an open list is that the owner probably only pays a sales broker commission that is about half of the typical fees. This is due to the fact that the owner is not represented, that is, it is not necessary to be represented despite the automatic extension, sometimes brokers have an instinct to try to extend the deferral contract beyond the expected closing date of the sales contract.
If the seller signs such an extension, it does not harm the broker and offers the advantage that the offer has expired for each buyer. The sales contract that motivated the extension may fail. A new buyer could show up before the extended call period expires, and so an extension would help the broker collect a commission for the buyer who was unknown at the time of the extension execution. . . .