Posted by soapymac on March 31, 2000 at 07:50:54:
that is involved here, in addition to state law, as John points out above.
There are certain types of listing agreements (in MA they are called “open listings”) that give the owner the right to continue to sell the property. IF (big word) a sale is generated AND consumated by the owner AND the agent/broker had not shown or caused to have shown the property, then the agent/broker is not entitled to a commission. (You can see why an agent woulf not mention that in a prospective listing appointment.)
If the property owner has signed either an “Exclusive” or “MLS Exclusive” contract, then a commission is generally due. These last two agreements essentially lock out the property owner from selling their own property; they are contractually required to send all prospective purchasers to the listing agent.
As an investor, you may not like that little “bite” in the listing agreement…but it is not illegal.