What's the purpose of a holdover period in a Washington buyer agreement?

What is the Holdover Period? The Holdover period is a length of time (in days) following a listing's expiration where the seller may owe commission to the listing agent if the property sells.

What happens when a listing agreement expires?

'Expired' means your home is off the market, explains Mary Beth Sales, a real estate agent in Beverly Hills, CA. But that's not all: An expired real estate agreement also means you're no longer tied to your real estate agent.

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One Time Listing and Showing Agreement

Listing Agreement Form With A Self-renewing Clause In Washington

Q: What happens when a listing agreement expires?

&#039;Expired&#039; means your home is off the market, explains Mary Beth Sales, a real estate agent in Beverly Hills, CA. But that&#039;s not all: An expired real estate agreement also means you&#039;re no longer tied to your real estate agent.

Category:

Real Estate - Listing Agreements

State:

Multi-State

Control #:

US-00056DR

Format:

Instant download

Description

The Listing Agreement Form with a Self-Renewing Clause in Washington is a legally binding document that facilitates the showing and sale of a property. This form allows the seller to authorize a designated realtor to show their home to prospective buyers. Upon the sale of the property, the seller agrees to compensate the realtor with a predetermined professional fee or a percentage of the sale price, which is payable at closing. Key features include the clear delineation of agency relationships, such as whether the realtor is acting as a single agent for the buyer or seller, or in a transactional capacity. To fill out the form, sellers must provide property details, including addresses and legal descriptions, alongside their personal information and signatures. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants looking to streamline property transactions, ensure compliance with state regulations, and maintain organized documentation. It is essential for users to review the form carefully and seek legal advice if they do not fully understand the terms outlined in the agreement.

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FAQ

What is the Holdover Period? The Holdover period is a length of time (in days) following a listing's expiration where the seller may owe commission to the listing agent if the property sells.

Although many OREA standard clauses are designed to protect your clients, the holdover clause in a listing agreement was specifically created to protect REALTORS® by ensuring that you receive the commission you've earned if a house sells.

An extender clause protects the listing agent from losing the commission they earned, even if the agreement has expired. For example, a seller may hope to cut closing costs when selling their home. To do this, they could try to avoid paying the buyers' agent's commission.

HOLDOVER CLAUSE This is to prevent buyers and sellers working with brokerages from waiting until the brokerage contracts expire to place and offer and avoid paying remuneration to the brokerage. The standard holdover clause is 180 days however, that timeframe is negotiable.

“'Expired' means your home is off the market,” explains Mary Beth Sales, a real estate agent in Beverly Hills, CA. But that's not all: An expired real estate agreement also means you're no longer tied to your real estate agent.

The written listing agreements in real estate must not contain a self-renewing clause. However, they must contain elements like property description and a definite expiration date. It's also acceptable for them to contain a clause requiring the broker to deliver the agreement to the seller within a certain timeframe.

Extender clauses help protect listing agents from losing out on commissions. Sellers could typically wait to sell their home until after the listing agreement has expired, saving on commission costs.

The listing agreement is a legally binding contract between the broker and the seller, so any modifications or amendments to the contract need to be agreed upon and documented in writing by all parties. This ensures that there is a clear record of the changes made to the listing agreement.

– Automatic renewal laws in various states (e.g., California, Hawaii, Illinois, New York (went into effect in February), North Dakota, Oregon, Vermont, Virginia, D.C.)

Final answer: The carryover clause allows a broker to collect a commission after the listing contract expires if the property is sold to a buyer initially introduced by the broker during the term of the contract.