Most commercial real estate sales begin when the seller keeps a broker. The choice of broker may depend on a number of factors, such as the previous relationship. B, the background and the broker`s skills with respect to the property and the amount of the commission. The next step after selecting the broker is to execute a listing agreement that the broker usually prepares by adapting its standard form to the proposed transaction. Listing agreements vary considerably from state to state and from broker to broker. However, most list agreements deal with similar problems, and many of these problems are potentially very important to the seller. Some of these problems are obvious, others are not. Almost all are negotiable. Here are seven of the most important issues that the seller can negotiate in the broker`s list agreement. First, the seller must know which potential buyers the broker will ask for a commission for (knowing that this may allow the seller to withdraw these buyers from a later offer from another broker and avoid a double commission). The seller can do this by limiting the applicability of this provision to buyers whose names appear on a written list of interest that the broker has served on the seller within a specified period, perhaps in the order of ten days, after the expiry of the offer. However, the seller should go further and limit the names that may be on the list of interested parties.
For example, if the broker sent an email explosion to thousands of potential buyers, the seller would not want to get a list of interested people with thousands of names. The seller should require that the individual have submitted a letter of intent or contract as a condition for being on the list of interested parties, or that the broker personally brought the person or the person`s representative to the property, or had spoken personally with the person concerned or the person`s representative. The seller should also require that the list of interested parties be submitted in a timely manner and that the time frame is essential for the presentation of the list. (The seller should require that time be essentially of all provisions of the list.) Of course, the seller should ensure that the “tail” ends within a specified time after the list expires (three to six months seems to be appropriate). Ignorance. As practice is not yet the industry standard, a buyer broker can be a pioneer in the local investment market. Some agents may perceive a buyer broker as a threat; You can keep the full fee of the list agreement in the hope that the buyer will pay the buyer`s real estate agent`s fee.