If you decide to use a listing agent, you may want to add this addendum to your listing agreement.
This addendum protects the interest of the seller over the agent if an unrepresented buyer brings an offer. Of course, review and consult with your lawyer and provide feedback on any item I may have overlooked!
SAMPLE ADDENDUM TO EXCLUSIVE RIGHT TO SELL LISTING AGREEMENT
Regarding Buyer Broker Compensation
This Addendum is made on [Date], and is attached to and made a part of the Exclusive Right to Sell Listing Agreement dated [Original Agreement Date] (the “Listing Agreement”) between [Your Full Name(s)] (“Seller”) and [Listing Brokerage/Firm Name] (“Broker”) for the property located at [Property Address] (“Property”).
1. Purpose.
This Addendum modifies the compensation provisions of the Listing Agreement with respect to any compensation offered or paid to a buyer’s broker (also referred to as cooperating broker or buyer’s agent). All other terms of the Listing Agreement remain in full force and effect unless expressly modified herein.
2. Buyer Broker Compensation.
Seller shall have no obligation to pay, offer, or authorize any compensation, fee, concession, or split to any buyer’s broker or buyer’s agent in connection with the sale of the Property, except as expressly provided in this Paragraph 2.
Buyer broker compensation will only be paid by Seller if the following conditions are all met:
a. The buyer’s offer includes a written request for buyer broker compensation (e.g., via a seller concession, direct payment, or other mechanism) in a specific dollar amount or percentage of the purchase price;
b. Seller, in Seller’s sole discretion, determines that the offer (after accounting for the requested buyer broker compensation, any other concessions, closing costs, repairs, and Seller’s listing broker compensation) nets Seller more than the highest alternative offer that does not require Seller to pay buyer broker compensation; and
c. The transaction closes successfully.
Any such payment shall be made at closing from the sale proceeds and shall not exceed the amount requested in the qualifying offer. Seller is under no obligation to accept any offer or to pay buyer broker compensation even if the above conditions are met.
3. No MLS Offer of Compensation.
Broker is not authorized to advertise, offer, or communicate any specific compensation to buyer brokers via the MLS or otherwise, except as may be agreed in writing on a case-by-case basis for a specific offer.
4. Unrepresented Buyers.
If a buyer is unrepresented (no buyer broker), no additional compensation shall be due to Broker beyond the compensation specified in the Listing Agreement.
5. Entire Agreement; Modifications.
This Addendum constitutes the entire understanding between the parties regarding buyer broker compensation. Any further modifications must be in writing and signed by both parties. In the event of any conflict between this Addendum and the Listing Agreement, this Addendum shall control.