Here is the redlined explanation which is commonly distributed:
“COMMISSION: The following section declares the total fee that the Seller has agreed to pay to the real estate company if they are successful in selling the property. It also indicates a period of days after the expiry of the contract that the real estate company is entitled to their fee, if the Seller ends up selling the property privately to a Buyer who was introduced or shown to the property within the contract period. This is known as the “holdover period”. The last part of the commission portion is used on occasion when the Seller would also consider leasing the property as well as selling it.”
The explanation avoided the Second Listing Agreement. It incorrectly refers to the private Seller. It completely avoids the “top up” issue.
So, if I were a Seller, I would want a better explanation than that.
If agents are unaware of the “top up” provision, how can the public be expected to know?
Brian Madigan LL.B., Broker