Permission to Contact after Listing is Gone

The Missing Invitation

This is intended to apply after the Listing ends.

Here’s the actual wording in the Listing Agreement:

“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.”

Then, the Seller is directed to initial one or the other:

“Does”

“Does Not”

When the Listing is posted it will say:

 “Contact After Exp:N”  (or Y)

So, let’s have another look at it what the clause actually says:

“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.”

Effectively, this is an INVITATION. If the Seller selects “Does”, then, contact is encouraged, in fact, invited. It’s written in the “positive”.

However, if the Seller selects “Does Not”, then there’s no preclusion here. There’s simply no actual invitation. That’s it.

Anyone can still contact the Seller afterwards.

If there was to be an absolute refusal, denial or some sort of transgression that would be committed by a real estate agent afterwards, then the wording would be much different. This is not drafted like a “DO NOT CALL” provision!

In this case, the wording is quite simple and straightforward:

  1. An Invitation,  (Does)
  2. No Invitation.  (Does Not)

So, “are you handing out invitations OR are you not handing out invitations?”

Question: Have you ever shown up to a restaurant without a reservation?

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

Comments 4

  1. Ok! My listing is expired on August 26th. I signed “does not”. What does that mean. My realtor did not explain this as I requested a no holdover clause. Thinking once it expires I could list with any other agent.

    1. Post
      Author

      The holover clause is separate and distinct.

      You would have to look at your Listing to determine if it’s still there.

      You should be free to sign with another agent upon expiry.

      The “does not” refers to an invitation to have other agents contact you directly upon expiry.

  2. Hi Brian,

    Still looking for clarity…

    If the seller initialed the ‘Does Not’ and the listing has expired, would it be considered unethical or prohibited for a realtor to door knock said listing and introduce themselves and ask for consent to discuss the expired listing etc. If consent is not given then the realtor would simply reply with a thank you for your time and leave without even leaving a business card.

    1. Post
      Author

      An agent is not allowed to do this. So, the “work around” seems to be knock on the doors of everyone on the street and never make any reference to the fact that it had been listed.

Leave a Reply

Your email address will not be published. Required fields are marked *