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Updated almost 5 years ago,
Compensation regarding changing list agent
I am thinking of changing my list agent, i asked her who will be paid if a buyer toured the house, didn't put it an offer ,somehow change minds and submit an offer to my new listing agent? She said the compensation will be paid to her entirely. Here is the holdover clause in our contract,
"7.2.3. Any Sale (or Lease if § 3.6.2 is checked) of the Property within 180 calendar days after the Listing Period expires (Holdover Period) (1) to anyone with whom Broker negotiated and (2) whose name was submitted, in writing, to Seller by Broker during the Listing Period (Submitted Prospect). Provided, however, Seller
Will
Will Not owe the commission to Brokerage Firm under this § 7.2.3 if a commission is earned by another licensed brokerage firm acting pursuant to an exclusive agreement entered into during the Holdover Period and a Sale or Lease to a Submitted Prospect is consummated. If no box is checked in this § 7.2.3, then Seller does not owe the commission to Brokerage Firm. 7.3. When Applicable and Payable. The commission obligation applies to a Sale made during the Listing Period or any extension of such original or extended term. The commission described in § 7.1.1 is payable at the time of the closing of the Sale, or, if there is no closing (due to the refusal or neglect of Seller) then on the contracted date of closing, as contemplated by § 7.2.1 or § 7.2.3, or upon fulfillment of § 7.2.2 where the offer made by such buyer is not accepted by Seller"
my understanding is that only if there was an official offer submitted to me, then she may enticed to the commission. Since there was no offer as this point, she should NOT have commission. Although i do want to compensate her out of my pocket but that will be a different thing.
Bottom line is that i dont wan to my new agent did lots of work and end of no compensation. Please guide how to handle it properly? Thanks for all your options.