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When Does A Full Price Offer Earn You Your Commision On An Exclusive Listing. How Much Do They Need To Mirror Each Other?
Posted by: Kenny Tan
October 05, 2010

If you have a listing for a home for $1 million and you've procured a full price offer of $1 million all cash with no contingencies, there's usually no doubt that you've earned the commission. In that situation, even if seller changes his mind about selling the property, you believe you should are entitled to receive your commission in full from the seller. That's an easy one.

What if the same full price offer contains the usual contingencies like loan, appraisals, and inspection, does it make it not mirror the listing agreement if the listing agreement is completely silent about contingencies. Say it simply states $1 million and you left blank the "Additional Terms And Condition". Why doesn't the full price offer earn you your commission? On its face, the listing agreement appears to call for an offer that is at least $1 million, no ifs or buts, meaning no contingencies or other conditions.

Cases seem to suggest that in the example right above, you'vce earned no commision because the offer does not mirror the listing agreement. You might want to have this in mind the next time you draft the listing agreement if you're the listing agent. Perhaps it might be advisable to anticipate the standard contingencies and include them in your listing agreement to make sure the full price offer will mirror your listing.

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