Listing Agreement Changes

[annadedi]

What is the name of your state (only U.S. law)? California

I am looking to sell my house. I received a Listing Agreement from a real estate agent. We verbally agreed on various revisions to the agreement (neither of us has signed it yet). If I am the one revising the Listing Agreement (before we sign it) and making the changes typed on the computer (ie - Replacing 180 days with 60 days) and underlining these revisions (as if you were filling in the blanks on the agreement for Listing price, etc...)...do the Broker and I need to initial these changes or not since they're typed vs. handwritten. Do changes only need initials when they are crossed out? Here's are a few examples:

1. Before: "Seller hereby employs and grants Broker the Exclusive and irrevocable right, for a period of 180 days..."

Revised Agreement: "Seller hereby employs and grants Broker the Exclusive and irrevocable right, for a period of 60 days..." (60 days would be in a slightly different font)

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

2. What about adding "by Seller" at the end of the following clause:

"If Broker, Seller, a cooperating Broker, or any other person produces a buyer who offers to purchase the Property at the above list price and terms or at a price and terms agreed upon by Seller." (by Seller would be in a slightly different font)

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

3. Adding the following next to ADDITIONAL TERMS: See Additional Terms attached. In no event shall either this Agreement or the Additional Terms be interpreted separately.

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

Thank you for in advance for your help!

[justalayman]

typed v. handwritten; makes no difference.
alteraterations to the writing in place are where you would initial the change.

If I understand you correctly, there has not been a contract signed, as of yet. If so, then you do not need to initial changes since there are no changes to anything. You are simply writing a different contract with your own emphasis to make the agent realize that there are differences with this contract compared to the one they sent you.

[HomeGuru]

Originally Posted by annadedi

What is the name of your state (only U.S. law)? California

I am looking to sell my house. I received a Listing Agreement from a real estate agent. We verbally agreed on various revisions to the agreement (neither of us has signed it yet). If I am the one revising the Listing Agreement (before we sign it) and making the changes typed on the computer (ie - Replacing 180 days with 60 days) and underlining these revisions (as if you were filling in the blanks on the agreement for Listing price, etc...)...do the Broker and I need to initial these changes or not since they're typed vs. handwritten. Do changes only need initials when they are crossed out? Here's are a few examples:

1. Before: "Seller hereby employs and grants Broker the Exclusive and irrevocable right, for a period of 180 days..."

Revised Agreement: "Seller hereby employs and grants Broker the Exclusive and irrevocable right, for a period of 60 days..." (60 days would be in a slightly different font)

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

2. What about adding "by Seller" at the end of the following clause:

"If Broker, Seller, a cooperating Broker, or any other person produces a buyer who offers to purchase the Property at the above list price and terms or at a price and terms agreed upon by Seller." (by Seller would be in a slightly different font)

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

3. Adding the following next to ADDITIONAL TERMS: See Additional Terms attached. In no event shall either this Agreement or the Additional Terms be interpreted separately.

Do we need to initial this or it's not necessary since it's typed vs. handwritten?

Thank you for in advance for your help!

**A: have the broker type an addenda to the agreement stating all those conditions and both of you sign it together with the listing contract.

[annadedi]

Thank you for your help. Here are some further questions:

1) Right now the following is typed in next to "Additional Terms" in the listing agreement: "See Schedule A attached. In no event shall either this Agreement or Schedule A be interpreted separately."

a) Do we need to initial this on the listing agreement, or not since the agreement has not been signed yet?
b) What's the correct term for it? "Schedule A" or "Addendum A"? (Note: The Listing Agreement has not been signed yet)

2) With regards to Schedule A, here is the format I have so far:

Schedule A
Listing Agreement

The Listing Agreement is subject to the following provisions. It is understood and agreed, and
that regardless of whether or not an offer is presented by a ready, willing and able buyer:

1. …
2. …
3. …
4. …
5. …

In the event that any term herein conflicts with the Listing Agreement, this Schedule A shall supersede, but in no event shall either this Schedule A or the Listing Agreement be interpreted separately.


a ) What's the correct lingo/format for the title?:

* Schedule/Addendum A to Listing Agreement
* The way it is currently written
* Another way of titling it?

b) Does the Schedule need to refer to the Property Address?
c) Do the entry or closing statements need to to be modified?
d) Does the closing statement need to be #6 in the list, or should it be separate as it is right now? Does it need to be in the beginning?
e) If I sign the agreement + Schedule A and give it to the agent to sign, if they then make handwritten changes to it...their changes cannot be binding without my initials next to them, correct?

2) Here are a few clauses for the Schedule/Addendum:

1. At no time shall the commission paid by Seller exceed 5% of selling price. If Broker represents both Buyer and Seller, the total commission paid by Seller shall not exceed 4% of selling price. Broker shall be entitled to such commission, only if and when the Property has sold and been fully funded, and the commission shall only be payable out of Seller’s funds and proceeds in escrow.

a) Regarding the underlined words: Does saying "such commission" and "the commission" make it clear that it refers to either the 5% or the 4% commission? Do you recommend a better way to state it?

2. Broker shall not be entitled to any commission, reimbursement, or compensation of any kind from Seller if the Property is not sold, if Seller decides not to sell the Property, if completion of a sale is prevented by Seller or default of Seller, if Seller withdraws from the Exclusive Authorization and Right to Sell Agreement (“Listing Agreement"), if Seller terminates or cancels the Listing Agreement, or if the Listing Agreement expires.

3. Referring to the standard clause in the agreement stating "Seller agrees to pay Broker the commission, if broker or seller produces a buyer..."): The buyer must be ready, willing, and financially able to purchase the Property at a price and terms agreeable and acceptable to Seller and must complete the purchase of the Property.
a. Is this necessary or redundant with #2?

What are your thoughts? Does it protect me enough? Is it too redundant, would you add/remove/change anything?

Thank you so much for helping me as I would like to move forward asap!!!!

[TimStudiesLaw]

Originally Posted by annadedi

Revised Agreement: "Seller hereby employs and grants Broker the Exclusive and irrevocable right, for a period of 60 days..."

See below:

Originally Posted by annadedi

2. Broker shall not be entitled to any commission, reimbursement, or compensation of any kind from Seller if the Property is not sold, if Seller decides not to sell the Property, if completion of a sale is prevented by Seller or default of Seller, if Seller withdraws from the Exclusive Authorization and Right to Sell Agreement (“Listing Agreement"), if Seller terminates or cancels the Listing Agreement, or if the Listing Agreement expires.

I'm trying to understand, you're trying to write language on the "addendum" contrary to the face of the agreement? To me, It looks like you're trying to slip something past them. Cowboy up and put it all on the face of the agreement. Irrevocable = irrevocable.

[HomeGuru]

Originally Posted by annadedi

Thank you for your help. Here are some further questions:

1) Right now the following is typed in next to "Additional Terms" in the listing agreement: "See Schedule A attached. In no event shall either this Agreement or Schedule A be interpreted separately."

a) Do we need to initial this on the listing agreement, or not since the agreement has not been signed yet?
b) What's the correct term for it? "Schedule A" or "Addendum A"? (Note: The Listing Agreement has not been signed yet)

2) With regards to Schedule A, here is the format I have so far:

Schedule A
Listing Agreement

The Listing Agreement is subject to the following provisions. It is understood and agreed, and
that regardless of whether or not an offer is presented by a ready, willing and able buyer:

1. …
2. …
3. …
4. …
5. …

In the event that any term herein conflicts with the Listing Agreement, this Schedule A shall supersede, but in no event shall either this Schedule A or the Listing Agreement be interpreted separately.


a ) What's the correct lingo/format for the title?:

* Schedule/Addendum A to Listing Agreement
* The way it is currently written
* Another way of titling it?

b) Does the Schedule need to refer to the Property Address?
c) Do the entry or closing statements need to to be modified?
d) Does the closing statement need to be #6 in the list, or should it be separate as it is right now? Does it need to be in the beginning?
e) If I sign the agreement + Schedule A and give it to the agent to sign, if they then make handwritten changes to it...their changes cannot be binding without my initials next to them, correct?

2) Here are a few clauses for the Schedule/Addendum:

1. At no time shall the commission paid by Seller exceed 5% of selling price. If Broker represents both Buyer and Seller, the total commission paid by Seller shall not exceed 4% of selling price. Broker shall be entitled to such commission, only if and when the Property has sold and been fully funded, and the commission shall only be payable out of Seller’s funds and proceeds in escrow.

a) Regarding the underlined words: Does saying "such commission" and "the commission" make it clear that it refers to either the 5% or the 4% commission? Do you recommend a better way to state it?

2. Broker shall not be entitled to any commission, reimbursement, or compensation of any kind from Seller if the Property is not sold, if Seller decides not to sell the Property, if completion of a sale is prevented by Seller or default of Seller, if Seller withdraws from the Exclusive Authorization and Right to Sell Agreement (“Listing Agreement"), if Seller terminates or cancels the Listing Agreement, or if the Listing Agreement expires.

3. Referring to the standard clause in the agreement stating "Seller agrees to pay Broker the commission, if broker or seller produces a buyer..."): The buyer must be ready, willing, and financially able to purchase the Property at a price and terms agreeable and acceptable to Seller and must complete the purchase of the Property.
a. Is this necessary or redundant with #2?

What are your thoughts? Does it protect me enough? Is it too redundant, would you add/remove/change anything?

Thank you so much for helping me as I would like to move forward asap!!!!

**A: tme to hire an attorney. The same one that would review a purchase and sales contract when you get it.