Agent can still collect after home listing expires Real Estate Adviser by Steve McLinden • Bankrate.com

Dear Real Estate Adviser,
In my sales (listing) contract with a Realtor there is a provision that states the agent can charge a commission if the property is sold within 60 days after the expiration of the listing period. Is this typical?
-- John B.

Dear John,
The snippet of fine print you are referring to is what's known in the home-selling industry as a "savings clause" or "carry-over" clause. The latter, I think, more accurately describes what this contractual codicil is designed to accomplish.

You see, agents want these clauses built into contracts to guard against deceitful buyers or sellers who intentionally wait until the listing period expires to consummate a sale with intent of beating said agent out of a commission. Many a veteran agent can share horror stories about such frustrating, below-board scenarios. 

But, it is important to note that this agreement likely applies only to potential buyers -- "return customers" -- who were registered by your agent during the listing term. In other words, if you were to sell the place within 60 days of the expiration of the listing agreement to a registered buyer who your agent originally brought to the table, then your agent and any cooperating agent would be entitled to full commission. If not, then you could sell the place to one of your own prospects if you'd like.

That said, I am sure there are some signed listing agreements out there that leave out this all-important contingency. Just to be certain, take another look at your listing contract to double-check that the carry-over clause applies only to a buyer found by your agent. If it doesn't, and you've already got a potential buyer on the hook, contact a real estate attorney before you proceed any further.

In some states, the broker must present a written list to you of all parties who have been shown your home before making a claim for a commission past that initial listing period. And yes, carry-over clauses have become quite common, although many of them call for protection periods greater than the 60 days you note -- often 90 to 180 days, in fact. So on the face of things, at least, it looks as though you have an ethical agent.

Good luck in the selling game.

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