It might be wise to adopt a simple approach to terminations. Rather than adopt the risky OREA clauses, why not something simple and straightforward.
Leave it out completely
That’s about as simple and straightforward as you can get. That’s your choice since references to termination are optional. Now, you have said nothing specific!
Multiple Representation Clause
- This agreement shall come to an end,
- The holdover period shall commence at the time that it would otherwise have commenced, had this agreement not come to an end, and
- The Brokerage and Designated representative shall be reimbursed for their marketing expenses.”
Designated Representative Clause
“In the event that the Designated Representative shall not be able to perform in accordance with the agreement, and the Client does not agree to the appointment of a replacement Designated Representative, then:
- This agreement shall come to an end,
- The holdover period shall commence at the time that it would otherwise have commenced, had this agreement not come to an end, and
- The Brokerage and Designated representative shall be reimbursed for their marketing expenses.”
COMMENT
In both cases above, the last paragraph in respect of reimbursement would be optional. Another Paragraph specify the nature and type of marketing expenses could be included, like, for example, photography and staging expenses.
Brian Madigan LL.B., Broker
Comments 2
Great info Brian. Thank you. I have question regarding your holdover provision. What happens in between if the holdover period shall commence at the time that it would otherwise have commenced had the agreement not come to an end? If the Agreement is terminated early what happens in between those timeframes? I’m curious as to why the holdover period wouldn’t start immediately.
Author
Excellent point.
Yes, the holdover to kick it right away and not end until it would otherwise have ended.
It should be reworded to cover both time periods.