That’s What Makes it a Contract!

J Philip Faranda April 28, 2011

I had the pleasure of helping a new agent get his very first listing tonight. It was our second time at the kitchen table of this particular seller, and it was a textbook case of my standing offer to all my guys: Put me in front of your prospects and I’ll get you their business. 

And there we were, going over the listing agreement for them to sign and hire us. 

Suddenly, the dreaded paragraph 13 reared its ugly head. The shock! The horror! 

What is paragraph 13? The part that says if they cancel that there are consequnces. I can retain my right to my commission. I can bill them for expenses incurred if they terminate me before the end of the term. Horrible right? 

“Why can’t we break the contract? Why would we be penalized?” 

Because if you could break it with no consequences as if it never existed, it wouldn’t be much of a contract, would it? 

They signed. 

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