Exceptions to a Listing Contract

In today’s do-it-yourself world it is almost a foregone conclusion that prior to listing a home for sale with an agent, that the owners have asked their entire friend-network if they know someone who would be willing to buy it. In some cases the owners find exactly what they are looking for and are able to conduct the entire transaction without the assistance of a real estate agent.

In many more instances however, the owners need the assistance of a trained professional to identify a fair asking price, research a market analysis and gauge other competitive forces at work in the real estate marketplace. This effort by the real estate agent ultimately leads to promoting, showing and selling the owner’s property and getting paid a commission to do so.

What few owners are aware of however is the seldom-used contingency in their listing agreement called the “exceptions to a listing contract” contingency. This contingency will typically cover the overlap between doing-it-yourself and having an agent do all of the work.

The “exception” contingency is structured so that any potential prospects the owner worked with prior to signing the listing may purchase the property without the owner having to pay commission to their real estate agent. Usually this contingency remains in effect for one to two weeks after signing a listing agreement and then becomes void.

The overall goal of the contingency is for the owner to re-approach their friend-network and tell them “if they don’t move on the property to buy it, their agent will be working to sell it to someone else.” It is a little extra motivating boost that, in some cases, saves the owner a lot of money and expedites the selling process.

Qualifying customers to purchase real estate is one of the most important and overlooked aspects to hiring professional real estate agents. Working with the “exception” contingency in a listing agreement as an owner of real estate often proves this point time and time again.

Kevin Nordahl is a life-long resident of Door County, a REALTORŪ and a member of the Door County MLS. He is a Past President of the Door County Board of REALTORS® and a Senior Sales Consultant at Coldwell Banker Door County Horizons in Fish Creek. He may be reached online at knordahl@doorcountyrealestate.com or by phone at (920) 493-4004.

Archived Newsletters