sales contract

I wouldn't recommend signing any contract w/o running it by your attorney. Frankly, the buyer default clause sounds dubious...

buyer default payout for broker? new one on me..strike that and initial!!

sounds scummy that they slipped that in..lawyer time!!

why is that clause weird -- they broker did all the work they need to do -- if buyer defaults shouldnt the broker get paid for their work?

The broker's job is to sell it, not to just push papers around with nothing happening in the end. They should get paid only if they find a qualified buyer who actually completes the transaction. I find that they actually don't do much otherwise.

6 months may be the standard timeframe on the contract BUT if you find that the agent doesn't seem to be doing the job, do you want to be 'married' to them for 6 mos? I'd want to sign for 3 mos. & then see if we want to keep working together - just a thought ........

I spoke to 5 brokers, I really think this guy is very good, by far the best of those 5. I don't mind the 6 months, I think in this slower market it is not unreasonable. I'm going to run the contract to my lawyer just in case.

"the only surprise is that if a buyer defaults, Corcoran wants 10% of their deposit. "

Ask Calvin Klein about it. "Broker to the stars" (now a different type of stars?) Linda Stein tried to collect her commission on the 10% deposit when the buyer she brought defaulted and was denied by the court. So since they know they don't have a legal leg to stand on, they put it in the contract to try to get it that way.

You should add in the "broker failure clause", I think it is becoming real common these days. If broker fails to find a qualified buyer over the term of the contract at broker and owner agreed upon listing price, broker will compensate owner 5% of listing price as a "job failure fee".