If an agent is fired, and one of the people they originally showed the house to and introduced to the property, later buyers it, that fired agent still gets a commission.
What is that term called? Or list? Is it Exclusivity list?
There is no agency relationship since the contract expired.
A few protective brokerages provide a form stipulate after termination of the contract listing agent is entitled for a commission from the seller. It had to prove to the mediation that agent actually produced a buyer earlier. This form needs to state it is valid within say 90 days of cancellation. It is signed when the contract was cancelled by the seller. Often the seller decline to sign the form.
@Josef Roberge That term will be spelled out in your listing contract. If it's not, my presumption would be that there is no "protection period" for you agent - unless CA law provides for a minimum period.
It's better that you not end up finding out in court though.
Most listing agreements do have a protection period after listing termination, read the listing. This is, in part, to prevent a buyer from finding the property then the mls listing, talking to the seller who would then “fire” their agent, and deal directly with the buyer, who found the property due to the listing agent efforts.
If you ask about a specific situation, rather generalities, you may get a better answer.
There is a specific term for it I though. I'm referring to the listing agent. So If I list a property, I show it to 20 people, then the seller fires me, hires a different agent, whatever. I provide the client with a list of people I showed the property to.
Then one of those 20 people I showed it to before, ends up buying it with the new agent.
I am owed a commission still, by law. I introduced that buyer to the property.
Well, there IS a difference between showing a property to someone and being the procuring cause. Is this just a general question as an agent, worried about it happening in the future or is there a specific circumstance....I won’t bother asking again.
If you’re asking as an agent, worried it may happen in the future, you’re focusing on the wrong things.
Are you talking about a Broker Protection Clause?
Yes, I think that's it, broker protection clause. I'm asking out of curiosity only, saw it mentioned on a show, has nothing to do with me.
So an agent just writes up a list at the end and provides it to the client, is it very detailed? What if the agent forget to provide it initially?
So where is that in the standard CAR listing form? I didn't see it when i scanned through the listing agreement form.
@Tenzin Wangchuk Thanks. Yes, protected buyer list, or protection clause.
I found for CA:
- a broker must deliver to the seller the list of protected buyers no later than the end of the listing period or any extension or cancellation.
It does not talk about length though. I looked over a copy of the CAR listing agreement form, I could not find any details about the protection clause period. So I don't know where or how it is worded in the agreement forms. http://srcar.org/assets/2016/02/Jan-2016-Meeting-Revised-RLA-Draft.pdf
Not sure about CA but here in TN what you're referring to is called a Carry Over Clause and it's part of the agency agreement a seller signs with a listing agent.
Essentially it states that if a buyer, that was introduced to the property while the seller was in an contract with the listing agent, purchases the property within a certain time period (decided by agency agreement depending on agent\brokerage, but is negotiable with seller) then the now former listing agent is still due thier commission. It doesn't apply if the seller signs an agreement with a new agent.
The type of agreement/contract the seller has with the agent obviously plays a role but the clause would be clearly spelled out in the agreement.
Ok Josef so I have to ask, what part do you play in your question? the owner who fired the agent, the buyer who was showed the property that the agent was fired from? I always see questions like this and really want to know from what perspective are you asking. Thanks. Glad to help if you fill me in.
@Doug Burrell None of those, just pure curiosity. What prompted it is, you'll get a kick out of it, is an episode of Million Dollar Listing. Two of the star agents (Madison and James) co-listed a home in Malibu. The listing expired, unsold. But then one of them was re-hired independently by the seller, to list it on his own. (Madison)
The buyer who ended up buying it, was shown the property during the original co-listing prior. So the agent (madison) had to go back to his old co-listing agent (james) and share the commission with him.
So If hiring a new agent (or a new listing agreement) voids out the protection clause from prior listing agreements, why did he have to share his commission?