March 22nd, 2021 at 3:38 pm
Answer: Yes. Here are step-by-step instructions for completing a cancellation of a listing agreement:
Step 1 – Complete C.A.R.’s Cancellation of Listing (COL) form: There are 4 basic options in the COL that entitle you to still get paid, despite the cancellation of your listing agreement: (1) If the seller sells during your original listing period (check paragraph 1(A)); (2) If the seller sells during your safe harbor period to certain prospective buyers (check paragraph 1(B) which can be combined with 1(A)); (3) If the seller lists the property with someone else (check paragraph 2 and review what it says); or (4) If you want to be paid for your out-of-pocket expenses (check paragraph 3 and you can insert the word “AND” in the margin before paragraph 3 to combine it with the other options above). Alternatively, you can give up your entitlement to compensation altogether (check paragraph 4 of the COL) or set forth other terms in paragraph 5 of the COL.
Step 2 – Identify Any Prospective Buyers: For option #2 above, you can elect in paragraph 1(B) of the COL to have your 90-day safe harbor period commence upon cancellation or as specified in the listing agreement. You must, however, provide the names of the prospective buyers who viewed the property or submitted an offer during your listing period (as provided in paragraph 3A(2) of C.A.R.’s Residential Listing Agreement). To do that, you can insert the names of those prospective buyers in the 2 blank lines provided in paragraph 1(B) of the COL. If that’s not enough space, you can reference, attach, and complete C.A.R.’s Notice of Prospective Buyers (NPB).
Step 3 – Get the Signatures: To be safe, get the seller to sign the COL and NPB first, before we sign. For our signature, the COL must be authorized and signed by your office manager, not by you.
-Thank you to Sue Turner (Monarch Beach Office) for suggesting this week’s legal tip!
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