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    Seller Contract – Texas

    Well in my last post. I mentioned that one realtor sent me a blank contract. The other realtor I'm thinking about using sent a contract that I've been slowly going over. The first thing I noticed was that it's for a full year. I'm thinking about asking for 6 months instead.

    Not finished reviewing but decided to run the contract through AI. Something I didn't notice was dual agency allowed (according to AI). I had asked the realtor about this (because the contract kind of seemed like it did allow it). He said he doesn't believe in it. But AI says the contact allows for it.

    Here is the whole breakdown from AI. Please tell me if some of this stuff is standard or if I should be pushing back.

    Sorry, this is going to look extra long. I tried to put the info into a google doc and share a link, but I got a warning. So pasting text below
    Thank you

    Here’s a plain‑English risk/concern review of your Texas listing agreement. I’ll focus on provisions that could cost you money, limit your flexibility, or create liability.

    🔴 Biggest Concerns / Risks

    1) You owe commission in more situations than just a sale

    • Commission is earned if any of these happen:

    👉 Why this matters:
    You could owe ~6% commission without a completed sale.

    2) Long commitment (12 months)

    👉 Concern:

    • You’re locked into this broker for a full year.
    • No easy exit clause is visible.

    ✅ Tip: Many listings are 3–6 months.

    3) Protection period (tail) still triggers commission

    👉 Meaning:

    • If someone the agent showed the home to buys later → you still owe commission.

    4) You must pay even if BUYER defaults

    • If a buyer backs out and you keep earnest money:

    👉 This is often overlooked and surprises sellers.

    5) Exclusive listing = you can’t self-sell without paying

    👉 Even if:

    • You find the buyer yourself
    • A friend/family member buys

    ➡️ You still owe the full commission.

    6) 6% total commission (3% + 3%)

    👉 Concern:

    • Still standard, but fully negotiable (contract says so).
    • You are locked into this rate once signed.

    7) Broad indemnity (you take most legal risk)

    You must:

    • Defend and pay legal costs if issues arise [Walker | PDF]
    • Cover damages caused by:
      • Incorrect info
      • Failure to disclose
      • Property condition issues

    👉 This shifts a lot of liability onto you.

    8) Broker not responsible for damage or security

    • You assume risk for:

    👉 Even if strangers enter via lockbox.

    9) You must route ALL buyers through broker

    👉 Practical impact:

    • You lose control over negotiations and communications.

    10) Irrevocable license for your photos/content

    • Broker can:
      • Use and distribute your listing photos/content indefinitely
      • Even after the listing ends [Walker | PDF]

    👉 Not a deal-breaker, but permanent.

    11) Showing access risk (lockbox clause)

    • You:
      • Accept risk for unauthorized entry
      • Indemnify broker unless they’re negligent [Walker | PDF]

    👉 Important if you have valuables.

    12) Default clause ≈ automatic commission

    If you:

    • Don’t cooperate
    • Or breach any term

    ➡️ You can owe full commission anyway [Walker | PDF]

    🟡 Moderate Concerns

    MLS exposure (good, but binding)

    • MLS listing likely enabled (checked) [Walker | PDF]
    • All listing data becomes MLS property

    👉 Standard, but not reversible later.

    Intermediary (dual agency allowed)

    👉 Risk:

    • Less negotiation transparency
    • Reduced advocacy

    You must stay financially current

    You represent:

    👉 If incorrect → legal exposure.

    🟢 Neutral / Standard

    • Mediation required before litigation
    • Attorney’s fees to prevailing party
    • Equal housing compliance
    • Disclosure requirements

    (All typical for Texas contracts)

    ✅ Key Questions You Should Consider (Actionable)

    Before signing (or if still editable), consider:

    1. Can I shorten the term to 6 months?
    2. Can I add a termination clause?
      • Example: cancel after 30 days with notice
    3. Can I reduce commission (e.g., 5% total)?
    4. Can I exclude specific buyers?
      • (family/friends list)
    5. Can I limit intermediary (dual agency)?
    6. Do I want a shorter protection period (30 days instead of 60)?

    ⚠️ Bottom Line

    This is a standard Texas REALTOR® listing contract, but:

    👉 The biggest financial risks are:

    • Owing commission without a sale closing
    • Being locked in for 12 months
    • Liability + indemnity heavily favoring the broker

    If you want, I can mark this up with recommended edits you could ask your agent to change before signing.

    Sources

    Provide your feedback on BizChat

    You said:

    yes please

    Copilot said:

    Copilot

    Here are specific edits / negotiation points you can give your agent (or request in writing)—worded so you can actually use them. I’ll flag each as HIGH priority (money/risk) vs optional improvement.

    🔴 HIGH‑PRIORITY CHANGES (Strongly Recommend)

    1) Shorten the listing term

    Current: ~12 months [Walker | PDF]

    ✅ Request:

    📌 Why:
    Long lock-in reduces your leverage if the agent underperforms.

    2) Add a unilateral termination clause

    Not currently included

    ✅ Add under Special Provisions (Section 15):

    📌 Why:
    Without this, you’re stuck unless the broker agrees to release you.

    3) Limit commission to CLOSED sale only

    Current: Commission earned even without closing [Walker | PDF]

    ✅ Replace with:

    📌 Why:
    Avoid paying commission if:

    • Buyer backs out
    • You decline an offer
    • A deal falls through

    4) Reduce or cap commission

    Current: 6% total (3% + 3%) [Walker | PDF]

    ✅ Options:

    • Ask for 5% total
    • Or:

    📌 Why:
    You shouldn’t pay full buyer-agent commission if there isn’t one.

    5) Add “named parties exclusion”

    Not present (critical)

    ✅ Add:

    📌 Why:
    Protects you if:

    • Family
    • Friends
    • Private buyers purchase the property.

    6) Shorten protection period

    Current: 60 days [Walker | PDF]

    ✅ Change to:

    📌 Why:
    Limits how long you’re tied to paying commission after contract ends.

    7) Limit buyer default payout

    Current: Broker gets up to 50% of damages/earnest money [Walker | PDF]

    ✅ Replace with:

    📌 Why:
    That money should compensate YOU for lost time and risk.

    🟠 IMPORTANT RISK REDUCTIONS

    8) Reduce your indemnity exposure

    Current: You broadly indemnify broker [Walker | PDF]

    ✅ Edit to:

    📌 Why:
    Right now, you’re covering almost everything.

    9) Add showing/lockbox protections

    Current: You assume risk for theft/damage [Walker | PDF]

    ✅ Add:

    📌 Why:
    Adds accountability for who enters your home.

    10) Limit intermediary (dual agency)

    Currently allowed [Walker | PDF]

    ✅ Option A (strict):

    ✅ Option B (middle ground):

    📌 Why:
    Avoids conflict of interest.

    11) Allow direct communication

    Current: You must route buyers through broker [Walker | PDF]

    ✅ Modify:

    📌 Why:
    Gives you visibility and control.

    🟡 OPTIONAL IMPROVEMENTS

    12) Limit marketing rights after contract ends

    Current: Broker keeps rights to your listing content forever [Walker | PDF]

    ✅ Add:

    13) Require performance expectations

    ✅ Add:

    14) Require approval for pricing reductions

    ✅ Add:

    (Usually implied, but good to make explicit.)

    ✅ CLEAN SUMMARY (What I’d push hardest)

    If you only negotiate a few things, prioritize:

    1. ✅ Termination clause
    2. ✅ Commission only at closing
    3. ✅ Shorter listing term (6 months)
    4. ✅ Lower commission or adjusted structure
    5. ✅ Named buyer exclusions
    6. ✅ Reduce protection period

    ⚠️ Final Thought

    This contract is standard Texas Realtor form, but:

    • It is written heavily in the broker’s favor
    • Almost everything you change must go into Section 15 (Special Provisions)

    ✅ If you want, I can:

    • Rewrite a clean “ready-to-paste” Section 15 with all recommended protections combined
    • Or help you prioritize what this specific agent is most likely to agree to based on market norms in San Antonio right now

    Sources

    Provide your feedback on BizChat

    Drop your files here

    …..

    Seller Contract – Texas
    byu/CiscoLupe inRealEstate



    Posted by CiscoLupe

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