The most common listing contract in Florida is the exclusive right of sale. An exclusive right of sale listing contract entitles a broker to compensation if the property is sold through the efforts of any party including the owner. Any sale during the term of the listing will cause the owner to be liable to the listing broker for a full commission. The owner cannot sell the property without paying a commission unless an exception is noted in the contract. If a cooperating broker assists the listing broker in securing a buyer, the owner pays the listing broker the stated commission and the listing broker pays the cooperating broker.
Our Fort Lauderdale real estate law firm assists in contract negotiations, preparation, and drafting to adequately and properly protect the interests of our clients. A listing agreement should provide that the owner gives the listing broker the exclusive right and authority to offer the property for sale. Also, a price and terms should be specified in the agreement. Further, the listing agreement should include the beginning and expiration dates of the broker’s exclusive right and authority to offer the property for sale. Commission disputes have arisen where parties post-date agreement and delay closing until after the expiration of a listing agreement to avoid paying a brokerage commission.
Fees are another important section in a listing contract. When a purchaser of the property is secured, the listing broker earns their fee. The fee is commonly a 6% commission of the gross purchase price. When the purchaser is secured by a cooperating broker, the listing broker contracts to pay the cooperating broker a portion of the commission, often half. Fees are usually paid at the closing. To help prevent disputes from parties delaying closings or post-dating contracts, a listing contract should include a protection period where the listing broker still earns fees after the listing’s expiration if the property is sold to a party the listing broker introduced. Our experienced Fort Lauderdale real estate attorneys will represent parties in commission disputes and may be able to prevent disputes from arising by being involved at inception of a transaction.
Have questions about real estate law in Fort Lauderdale? Contact Schecter Law Attorneys at Law Today.