Florida Realtors Legal Hotline reports an uptick in sellers who wish to be let out of their listing agreements. But is that a conditional or unconditional termination?
ORLANDO, Fla. – As we hear from our members around the state on Florida Realtors Legal Hotline, many are grappling with hard decisions related to the recent coronavirus (COVID-19) pandemic. Some have asked about clients or customers who wish to be let out of their listing agreements.
While the brokerage company and client are always welcome to negotiate any amendment they would like, including an agreement to place a temporary pause on the listing agreement that will resume at a later date, we thought it might be helpful to review the two types of termination options provided in the Modification to Listing Agreement:
Conditional TerminationThis termination fits a seller who no longer wants to sell the property.
If this turns out not to be the case, full commission would be due if the seller transfers (signs a deed), contracts to transfer (signs a purchase and sale agreement), or contracts to lease the property or any interest in the property “from the date of the conditional termination through the actual Termination Date and Protection Period, if any.”
Unconditional TerminationThis termination fits a seller who wants the option to continue marketing the property, with or without the help of another broker, after the termination.
Under unconditional termination, both sides agree to powerful release language, as they release each other from “all obligations under the Agreement and … any and all actions arising from or related to the Agreement.”
Joel Maxson is Associate General Counsel for Florida Realtors
© 2020 Florida Realtors®
https://www.floridarealtors.org/news-media/news-articles/2020/03/conditional-vs-unconditional-termination-whats-difference
ORLANDO, Fla. – As we hear from our members around the state on Florida Realtors Legal Hotline, many are grappling with hard decisions related to the recent coronavirus (COVID-19) pandemic. Some have asked about clients or customers who wish to be let out of their listing agreements.
While the brokerage company and client are always welcome to negotiate any amendment they would like, including an agreement to place a temporary pause on the listing agreement that will resume at a later date, we thought it might be helpful to review the two types of termination options provided in the Modification to Listing Agreement:
Conditional TerminationThis termination fits a seller who no longer wants to sell the property.
If this turns out not to be the case, full commission would be due if the seller transfers (signs a deed), contracts to transfer (signs a purchase and sale agreement), or contracts to lease the property or any interest in the property “from the date of the conditional termination through the actual Termination Date and Protection Period, if any.”
Unconditional TerminationThis termination fits a seller who wants the option to continue marketing the property, with or without the help of another broker, after the termination.
Under unconditional termination, both sides agree to powerful release language, as they release each other from “all obligations under the Agreement and … any and all actions arising from or related to the Agreement.”
Joel Maxson is Associate General Counsel for Florida Realtors
© 2020 Florida Realtors®
https://www.floridarealtors.org/news-media/news-articles/2020/03/conditional-vs-unconditional-termination-whats-difference
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