The Georgia Association of REALTORS (GAR) has a Commission “Protected Period” in the Seller Brokerage Agreement – so when does the Seller actually owe that Broker a Commission when their Listing Period Expires? The following is a synopsis of the latest episode of “Real Estate Made Crystal Clear” with our very own Dana Sparks. You can watch the video in its entirety below.
In this blog post, we will explore the Georgia Association of Realtors’ seller brokerage agreement, the protection period it affords, and what happens to your commission if you have an expired listing. We will examine the contract’s terms, specifically its length, protection period, and expiration date, as well as what it says about commission protection if a buyer makes an offer on an expired listing.
The Georgia Association of Realtors’ Exclusive Seller Brokerage Engagement Agreement
The Georgia Association of Realtors’ Exclusive Seller Brokerage Engagement Agreement, formerly known as the listing agreement, is a contract between a public seller or buyer and a broker. The agreement sets out the terms and time frames for the relationship between the parties.
Length and Expiration Date
The agreement’s commencement date is the day the client relationship between the public seller and the broker begins. It is effective upon being signed by both parties and delivered to both parties. The ending date of the agreement is negotiated between the public seller and the broker, and the last full date of the agreement is listed in paragraph 2AC. It terminates on the last day unless the parties agree in writing to extend it. It is important to include an expiration date on a seller brokerage agreement; otherwise, it violates Georgia’s license law.
Protected Period
The length of the protected period, as defined in paragraph A5, is the number of days negotiated between the public seller and the broker. The agreement protects the broker’s commission if a buyer makes an offer within the protected period. The corresponding paragraph for the length of time and the expiration is in paragraph B2, which explains the price and the listing period.
Commission Protection
If a listing agreement is extended, it will impact when it appears as expired on a listing service or when it expires. To extend a listing agreement, a broker and a seller must amend the seller brokerage agreement with an amendment. The contract itself affords an automatic extension, but it is not automatic. When a seller signs a listing agreement, they agree to allow an extension with the broker. If a seller gets the property under contract during the listing period and the buyer terminates the contract, the days that the property was under contract automatically get added to the expiration date of the listing agreement. The seller agrees to this when they sign the agreement. The broker must notify the seller that they intend to extend the agreement.
In conclusion, the Georgia Association of Realtors’ Exclusive Seller Brokerage Engagement Agreement is a contract between a public seller or buyer and a broker. The agreement sets out the terms and time frames for the relationship between the parties, including its length, protection period, and expiration date. The protected period is the number of days negotiated between the public seller and the broker, and it protects the broker’s commission if a buyer makes an offer within that period. The agreement allows for an automatic extension if the seller gets the property under contract during the listing period, and the buyer terminates the contract. The broker must notify the seller that they intend to extend the agreement.
Watch the entire video for more information here:
