Question regarding the Exclusive Right to Sell Listing Agreement

[alex]

Hi, I just got the contract for the flat fee listing service and there are two paragraphs which seem to contradict themselves:

5.b It is expressly understood that the Owner reserves the right to sell, lease, or exchange the Property to any
purchaser who the Owner finds and procures on his/her own, without further obligation for a commission to
Broker.

In this case the Broker is assumed to the HauseIt's assisting broker, so if I find someone on my own then I just pay the buyer broker (if any). Correct?

At the bottom of the contract, in the Explanations section it says:

An “exclusive right to sell" listing means that if you, the owner of the property, find a buyer for your house or if
another broker finds a buyer, you must nonetheless pay the agreed commission to the present broker.

In other words, if I find a buyer on my own, I still have to pay the agreed commission to the present broker - but who is the present broker? The HauseIt's assisting Broker? The buyer's broker? both? And what if I find a buyer without representation (i.e. no buyer broker), do I still own a commission to the HauseIt's assisting Broker?

Then it goes to say that:

An “exclusive agency” listing means that if you, the owner of the property finds a buyer, you will not have to pay a
commission to the broker. However, if another broker finds a buyer, you will owe a commission to both the selling
broker and your present broker.

Does this "exclusive agency" apply to this contract or not? Or is this contract just for "exclusive right to sell" because based on what it says that I have to pay both brokers.

Also what happens if the HauseIt's assisting broker finds a buyer who also has a broker...what commission do I pay then? Will both brokers split the commission identified in paragraph 5.a?

Please help me understand what this means!
Thanks
Alex

[HauseitAdmin]

Hi Alex, please note that in the Explanation section, there is language that states:

However, despite the above language which Broker is required to include, it is understood by Owner that the commission language previously mentioned in this agreement shall apply.

Essentially, the explanations of what an "exclusive right to sell" and an "exclusive agency" agreement are just that, explanatory language provided word for word by New York State, and required to be in every listing agreement. With that said, you can probably imagine that this boiler plate language is intended to explain what those listing agreements are in the traditional sense, to sellers who are paying 6%.

To be clear, that exclusive agency section in Explanations is government mandated boiler plate explanatory language. The listing agreement is an Exclusive Right to Sell Listing Agreement.

5b means just that, exactly as it's written. So yes, if you find a buyer on your own, you don't owe the listing broker any commission. And yes, you may owe commission if the buyer is represented by a cooperating broker.

Regarding your last question on what happens if our partner broker finds a buyer who also has a broker. The buyer's agent will receive the full commission co-broked in RLS/MLS, i.e. 3%. You will not owe the listing broker any commission. The listing broker only earns the flat fee paid upfront.

We hope you found this helpful, thank you for making use of our forum!!

[alex]

Thank you very much for the clear reply! This is what I was looking for!