As a routine matter most Listing Agreements are signed and include a ‘no contact” provision. Are they enforceable?
The preclusion for contact is contained in the Listing. It is then transferred to the MLS system as a representation. It may or may not be enforceable.
The wording is as follows:
In the event that this Agreement expires or is cancelled or otherwise terminated and the Property is not sold, the Seller, by initialling: consent to allow other real estate board members to contact the Seller after expiration or other termination of this Agreement to discuss listing or otherwise marketing the Property
2) Does Not.
It is rather obvious at the outset that “selling” the property is not prevented simply by selecting “does not”.
The issue is whether this “request” is actually binding.
It hasn’t gone to Court for interpretation.
Assuming that it is enforceable, how long would it be binding? The preclusion continues “for a reasonable time in the circumstances”. No one seems to have tested it yet.
In all likelihood, this time period would not exceed two years. That is the relevant Statute of Limitations time period.
Brian Madigan LL.B., Broker