Expired Listings and Commission Protection: What You Need to Know

So your listing expired…

And now a buyer shows up. Are you protected?

We are seeing more expired listings lately. The “list it Thursday, sold by Friday” era has cooled off (mostly), and with that comes a fun little scenario many of you have faced: the listing expires, and then a buyer appears, either directly or through another agent, ready to write. Cue the paperwork panic. Are you covered? Or are you about to work for free? Can you represent the sellers? Will you get paid? What happens?

Let’s talk about Section 10.3(b) of the standard listing contract. It states that in the XX number of days after the agreement ends, if the seller enters into a legally binding contract with a buyer who was introduced to the property during the term of the agreement, commission is still payable.

Translation: your expired listing might protect you.

But only if:

• You actually filled in that protection period.

• The buyer was introduced during the listing term.

• You have documented proof of that introduction.

• The offer is written within the number of days you inserted.

  
  

That is a lot of “ifs.” If your file is tight and your documentation is solid, this clause can absolutely work.

That said, my overwhelming preference is: sign a new listing agreement.

Why? First, it clearly establishes that you are representing the seller in this transaction (assuming you will be). It also solidifies your (and the buyer's agent's) commission. No grey zone, no debate, intentions are concrete. Second, if the deal with this buyer falls apart and the seller still wants to sell, you already have an agreement in place to put the property back on the market. Clean. Clear. Protected.

Bottom line: could the expired clause save you? Possibly. Should you rely on it as your strategy? Probably not.

Check your dates. Check your files. And if you are even slightly unsure, reach out.