The UAR Forms Committee approved two changes to the ERSLA.
First, in the Term of Listing section, the following language has been added to the ERSLA.
“In the event this Listing Agreement expires while the Property is under contract to be sold, the Company and Seller mutually agree that the Listing Period shall automatically extend until the under-contract transaction closes or is cancelled.”
This language eliminates the need to add an addendum to your listing agreement should your listing expire while the property is under contract. Hopefully this makes things easier and simpler for you and your sellers.
Second, in the Brokerage Fee section, the following language has been added to the ERSLA.
“The Company is authorized to share the Brokerage Fee, as advertised on the Multiple Listing Service (“MLS”), with another brokerage participating in any transaction arising out of this Listing Agreement. The Company shall offer a buyer agent commission (“BAC”) on the MLS of $_______ or ________% of the acquisition price. This amount may be modified only with the consent of the Seller. BROKERAGE FEES ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS®, OR MLS, OR IN ANY MANNER OTHER THAN BETWEEN THE COMPANY AND SELLER.
Seller’s Initials [ ]”
This language helps listing agents comply with their ethical obligations to discuss how their brokerage fee will be shared with other brokerages (see Standard of Practice 1-12 of the Code of Ethics). I also think this change gives sellers greater clarity and understanding.
Look for these changes to go live with our forms vendors in the next week or so (the form is on the UAR’s website right now). If you have any questions, feel free to call the UAR’s legal hotline on Monday, Wednesday, or Friday from 8:30 a.m. to 4:00 p.m.