Similarly, the language that refers to revelations, especially the broad language, is always a concern. Often, the information requested relates to issues such as “gaps” in improvement, shingle issues, environmental issues or compliance with existing legislation. The seller should avoid such allegations. It is sufficient for the seller to negotiate carefully, in the sales contract, the insurance and guarantees relating to these issues with the potential buyers. The seller should not be required to participate in similar negotiations only to enter into a listing contract. In addition, most sales contracts contain a protective “AS-IS” language that counterbalances all explicit assurances and guarantees. Most sales contracts also provide that all insurance or guarantees relating to the property will only survive the closure for a limited time. These restrictions are generally not addressed in the list agreement. Therefore, to the extent that the seller provides specific guidance, insurance or guarantees in the listing agreement, the seller may ultimately have a liability to the broker that is more expansionary than the seller`s responsibility to the buyer. A word about the termination of the list contract. The general rule is that a list agreement that contains a specified expiration date, as required by Minn. 1 (b) (1) is prescribed by its conditions. It goes without saying that the parties can also agree to each other to terminate the listing contract before the expiry.
A listing agreement that does not set a specified expiry date, but which, on the other hand, largely meets the legal requirements, can be terminated at will. Rosenberg v. Heritage Renovations, LLC, 685 N.W.2d 320, 326 (Minn. 2004). Work again on the list agreement to obtain an acceptable expiration date for both parties. List agreements generally apply (and certainly should be) for a specified period, often in the order of six months or one year. While this is reasonable in itself, there could be circumstances where a seller is dissatisfied with the broker`s marketing efforts or other stock of the broker. In such circumstances, the seller does not want to wait for the list to unfold to find another broker. Therefore, the seller should provide an early termination mechanism. Ideally, the seller wants the right to terminate the offer for any reason or for no reason after a relatively short period of prior notification.
Similarly, the seller wants the right to terminate the offer immediately for a good reason. A broker will often be available to reasonable provisions of this type, especially if the broker is protected with respect to potential buyers on a list of interested parties and can recover his expenses out of pocket if the termination was without good reason. Perhaps the most difficult provision that can be negotiated in a listing agreement is the compensation provision.