2.PROTECTION PERIOD – If, within 90 days of the expiry of this agreement, the property is sold, exchanged or leased to a person or party to whom the property was shown during the duration of the list, the owner agrees to pay the broker and, if so, a cooperative broker as if the broker had made the sale, exchange or lease. A New York real estate agent listing contract is a written contract between a realtor and an individual on the market to sell a piece of property. Once a list agreement has been signed, the person becomes the agent`s client and the agent must represent his client to the best of his ability to obtain a fair offer for the property. This obligation is advantageous to both parties, since the agent receives a commission (percentage of the sale price) after the closing of the sale. It is important for clients to understand that they are able to negotiate the terms of the commission/commission before the agreement is signed. The agent should receive a reasonable percentage, but only if the sale is completed and the corresponding efforts have been made by them. An indication of caution is that there is a tacit bona fide and fair trade alliance in all treaties that requires each party to make its best efforts in carrying out its obligations and not to deliberately do anything to prevent the other party from carrying out the execution. Sellers should not use the language of a listing agreement as a means of acting in bad faith or deliberately defaulting on a transaction. The seller may also request a language in the listing agreement allowing him to accept or refuse unconditionally an offer made to him by the broker. This may prevent the seller from being under undue pressure to accept a specific offer through another. There are many cases where the broker has successfully sued the seller in commission when there is no closure of real estate or where the closure of real estate is not relevant to the analysis of the transaction.
See Realty Investors of USA Inc. v. Bhaidaswala, 254 AD2d 603, 679 NYS2d 179 (3rd Division 1998) (court concluded that the broker earned a commission by obtaining a buyer who had reached an agreement with the seller on substantial terms and who was ready, willing and performing. It was not based on an actual sale or transfer of ownership of the property. In this case, the seller and buyer never entered into a binding formal sales contract and there was never a sale; Paul J. Boyer Realty Perry, 208 AD2d 1024, 617 NYS2d 393 (3rd Division 1994) (court held that the real estate agents won his commission because he produced a ready, ready and capable buyer and it was irrelevant that no closure took place. In this case, the listing agreement did not prohibit the seller`s liability for a commission at the time the property was concluded; Prime City Real Estate Co, Inc. 256 AD2d 80, 681 NYS2d 245 (1st dept., 1998) (court found that the broker had won his commission because it had prompted a meeting of minds on the essential terms of the sale and that the seller could not help but pay the commission after receiving a higher offer and refused to negotiate the rest of the details of the sale).) When listing their home with a real estate agent, few sellers take the time to carefully read the terms of their listing contract and possibly negotiate with their broker.