Sheri Smith Sales Representative
iPro Realty Ltd. Brokerage

 

 

 

 

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Direct: 519-943-7028
Office: 519-940-0004
Fax: 519-940-3443

 

 

Hold Over Clause on Listing

February 1, 2012 - Updated: February 1, 2012

 

As realtors, sometimes we don't explain the fine print on a listing agreement as clearly as we should. You need to understand what you are signing. For instance, do you know why the listing agreement has a hold over clause? 

 

The hold over clause ensures that the Brokerage earns commission if the home sells. The clause protects the realtor in the event that a Buyer and Seller hook up if the listing expires and the home sells privately. If a Buyer is shown the property or introduced to the property during its initial listing with a Brokerage and then contacts the Seller during the holdover clause and buys the property, the listing brokerage may still be entitled to their commission. The Buyer would not of known about the property if it wasn't for the original listing. This holdover clause helps to protect the realtor and it recognizes that the realtor put time and effort into finding the buyer.

 

If you are not sure about the fine print, be sure to ask your realtor.


Tagged with: selling privately commission protects realtor
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