If you use a real estate agent, a Listing contract is a Listing contract, right? No way, Jose. There are two Listing contracts out there and which one you use can make a difference. So, let’s examine the two Listing contracts in question:
Contract #1 – The Arizona Association of Realtors Exclusive Right to Sell contract is 8 pages, small print, and starting on line 14, there is language that says an agent has earned a commission by bringing a “ready, willing, and able buyer”. This means, although it rarely happens, that your agent may demand a commission if you back out of a deal and decide at the last minute not accept an otherwise acceptable offer. Does this happen? Rarely. But sometimes circumstances change, and a seller no longer wants to sell. When this happens, do agents demand a commission? Again, rarely, but it has.
Contract #2 – Last year, eXp Brokerage, a member of the Realtor Association all across America, decided to create its own Listing contract. It is 5 pages, with larger print, and in Section 5, it states, “Broker will earn compensation when a sale of the property has been completed”. This means, if you change your mind, the title search turns up something that won’t allow you to sell, or the deal falls out of escrow for any reason, you do not owe commission.
This clarification is long overdue and one of the reasons I changed brokers to eXp three years ago.
eXp is one worldwide brokerage. Most of the other brokerages are regional or franchises.
eXp has no brick-and-mortar overhead and no debt. They operate in the cloud. They are super efficient. And they are innovators, I.e., a simpler, large-print Listing contract.
I love eXp and you will too.
Call me.
- Joseph
