If your listing agreement with a client terminates, Paragraph 5E, Protection Period, of the Residential Real Estate Listing Agreement - Exclusive Right to Sell (TXR 1101) outlines under what conditions you would still receive compensation for the sale of that property.
- Section 1 of the paragraph sets the length of the protection period.
- Section 2 describes the written notice you must give to the seller to ensure that certain buyers would trigger the requirement that the seller compensate you if those buyers were to purchase the property during that period.
- Section 3 covers when the protection period would not apply, namely if the seller agrees to sell the property, the property is exclusively listed with another broker who is a REALTOR® at the time the sale is negotiated, and seller is required to pay that broker a fee for the sale.
For clarification… So, if property is listed and sold with another broker (Paragraph 3), even if a list has been provided and sold to one of those buyers, broker #1 is out?
Yep! That’s the long and short of it. I’ve consulted with real estate attorneys on this matter just to be sure.
this seems contradictory. When exactly does it apply then?
It applies when the seller wants to sell on their own to any party that is on the list you provided.
Is there a specific form to list the protected buyers?
When the listing agreement expires and you sell to Opendoor or another iBuyer within the protection period, is the commission still due to the 1st agent?
In Texas- What day does the protection period begin?
1. the day seller TERMINATES listing OR
2. The day the listing agreement ultimately EXPIRES.
Unless you have an unscrupulous seller who does not care