August 12th, 2024 at 3:09 pm
Question: I have a pending listing agreement on the older-version C.A.R. Residential Listing Agreement (RLA) (revised December 2023). With the changes to the MLS under the NAR Settlement, my client says that she is willing to just switch over to a newly-revised RLA form (with a July 2024 revision date). But I am worried that, right after we mutually sign a Cancellation of Listing (COL) for the old RLA, my client will somehow decide that she will not sign a new RLA with me after all. How do I protect myself?
Answer: This situation does happen sometimes, unfortunately. Under “Other” in paragraph 5 of the COL cancellation form, you can protect yourself by saying something to the effect of “This cancellation is contingent upon Principal and Broker entering into a new RLA (revised July 2024).”
Also remember to address any safe harbor clause you may have in paragraph 3A(2) of your old RLA. You can, for instance, check the box in paragraph 1B of the COL, and reference and attach a C.A.R. Notice of Prospective Buyers (NPB) to protect your entitlement to compensation for prospective buyers who were shown the property, or who submitted an offer, during your original listing period.
Copyright© 2024 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of August 12, 2024. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.
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