Sample New York Exclusive Right To Sell Listing Agreement for NYC
It’s critically important for home owners to review a sample New York Exclusive Right To Sell Listing Agreement for NYC and understand the nuances of the obligations they are signing up for before agreeing to anything with a real estate broker.
The most important section of the agreement to fully understand is the section about broker commissions. If you’re working with a traditional broker, you’ll notice that the language will stipulate that you will owe a typical real estate broker commission as long as a “ready, willing and able buyer” is procured at your listing price. This needs to be carefully understood before you sign a New York Exclusive Right To Sell Listing Agreement because it means even if you decide to back out you would still owe commission.
As referenced by the New York Department of State, there have been many instances where a broker has successfully sued a seller for a commission even though no closing took place. Even though most traditional brokers will tell you that they would never do that because it’s bad for business and that this is boiler plate language that everyone signs, you should realize that you do have the right to negotiate the language within a New York Exclusive Right To Sell Listing Agreement.
Here is an example of alternate language offered by our affiliate brokers which better protects home sellers by conditioning the receipt of commission on the actual closing of title or consummation of sale. Note that commission rates are more flexible under this arrangement. This type of language allows our affiliate brokers to provide you with the 1% commission for full-service listing arrangement.
If during the term of this agreement, or any extension thereof, a transfer, sale or exchange of the property or any portion thereof is made, effected or agreed upon with anyone, the Owner agrees to pay the Broker a commission of [ ]% of the sale or exchange price of the property. If a Cooperating Broker procures the buyer, Owner agrees to pay the Cooperating Broker a commission of [ ]% of the sale price at closing/title in addition to compensating the Broker a commission of [ ]% of the sale or exchange price of the property. If the Broker procures the buyer, Owner agrees to pay the Broker a commission of [ ]% of the sale price at closing/title in addition to compensating the Broker a commission of 1% of the sale or exchange price of the property.
Initial Listing Price
This is very important for many reasons. The primary danger to watch out for in a traditional New York Exclusive Right To Sell Listing Agreement is that your listing price will be too easily hit by the first buyer that sees the apartment. In this situation, you may be pressured to accept the offer and pay commission even if you would have received a higher price by staying on the market for longer. No wonder traditional real estate brokers love to harp on about how important the initial listing price is. The lower the price, the sooner they can force you to pay them their commission!
Another reason the listing price must be mutually agreed upon by both the seller and broker is because the broker makes an upfront investment by listing the home.
This typically means covering the cost of professional photography, floor plan drawings and spending time showing the apartment and negotiating and coordinating with brokers and buyers. Keep in mind, most listing agreements will have an expense reimbursement clause whereby expenses are to be reimbursed by the owner should the property not sell.
What does a sample New York Exclusive Right To Sell Listing Agreement look like?
Exclusive Right to Sell Listing Agreement
This Exclusive Right To Sell listing agreement for the Sale of Real Property is made on the first date below by and between:
[ ] herein thereafter referred to as “Broker” and
[ ] herein thereafter referred to as “Owner.”
OWNER’S AUTHORIZATION
Owner grants to the Broker the Exclusive Right to Sell the property identified herein at a price and on the terms listed below or upon any other price, terms or exchange to which Owner may consent. Owner grants permission to Broker to post a sign or other form of advertisement on the property. Owner authorizes Broker to list the property on any and all available databases, real estate websites and website(s) of the Broker and/or affiliated parties and to cooperate with all other Brokers to secure a buyer or tenant as quickly as possible. Owner agrees to refer any and all inquiries about the property to the Broker.
In order to facilitate the sale of the Listed Property, the Owner hereby grants to Broker a non-exclusive, royalty-free license to use, sublicense, publish, display, and reproduce any photographs, images, graphics, video recordings, virtual tours, drawings, diagrams, written descriptions, remarks, narratives, pricing information, and other copyrightable elements of or relating to the Listed Property provided by Owner to Broker. Owner represents and warrants to Broker that the Owner Listing Content, and the license granted to Broker for the Owner Listing Content, do not violate or infringe upon the rights, including any copyright rights, or any person or entity.
Owner represents and warrants that he/she has received a copy of the “Disclosure Regarding Real Estate Agency Relationships.”
To read the rest of the sample NYC Exclusive Right To Sell Listing Agreement, please visit our full article at https://www.hauseit.com/sample-new-york-exclusive-right-to-sell-listing-agreement/
Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
