05/21/2020
Too often, buyers and sellers don’t take the time to understand what they’re signing. Your agreement with the brokerage is a binding contract. For something as important as a real estate transaction, it’s not to be taken lightly.
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Do you know what is a "holdover clause"?
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Holdover is included in most representation agreements with both buyers and sellers. In general, a holdover clause protects the brokerage and states that if you enter into an agreement of purchase and sale within a specified time (the “holdover period”) after the expiration of the contract, you may still need to pay commission to the brokerage.
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In the case of buyers, the holdover clause applies to properties that you were introduced to while you were under an agreement.
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For sellers, the holdover clause typically applies to potential buyers who were introduced to your property or viewed it while you were under an agreement.
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When selling, it doesn’t matter how the buyers were introduced to your home or why they came to see the property. Whether they wandered into an open house, responded to an advertisement or even if you know them personally and they expressed an interest, the holdover clause could still apply.
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However, if you were introduced to the buyer after your listing agreement expired, you would not be subject to the holdover clause in this example.
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For more details, examples and specific questions please contact Donna Bulika directly - link in bio...
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