First time house seller here, trying to understand the PRDS contract being offered by my realtor.
- The contract is set to expire about two months after the anticipated listing date. There is also a clause in the contract which states that the Seller shall pay the Broker compensation within 30 days after "any type of ending, expiration, cancellation or termination of this Listing Agreement". This is referred to as a "protection period".
I have checked the median days on the market for my area and it should be sold within a few weeks. However, I am wondering what happens if, for whatever reason, my house doesn't sell as quickly as anticipated and the contract expires. It sounds like I am expected to pay the Broker, even if the house doesn't sell.
How is the contract expiration date usually set? Is this date something I should try to negotiate?
- Regarding this passage: "Who pays the Buyer's Brokerage Fee may impact the assessed value of the property; Seller should consult with a local qualified California real estate attorney who is knowledgeable about assessed property values." Why would I, the Seller, need to consult with a RE attorney about the assessed value of the property? Is this for capital gains tax?
Any help understanding this would be greatly appreciated !
Questions about a seller agreement …
byu/ShinyNoggin inRealEstate
Posted by ShinyNoggin
1 Comment
Usually this type of clause is meant to cover any sale that might happen in the period following the end of the listing agreement (for example, a few weeks after the listing agreement expires a buyer who came to the open house calls you with a direct offer).
But I agree that language is strange. You could email the agent and ask for written clarification.