From 1 July, all agreements should include, where appropriate, the following: movable and personal property, inspection restrictions and reports, and the Internet of Things and Records. It is interesting to know that there are non-exclusive agreements when it comes to real estate agents. I intend to look for a commercial real estate agent to get an overview of the current state of the market. That way, I can decide if it`s time to start investing. For the lawyer, it is important to understand and advise clients on transfer clauses. An expiration clause is a provision of the listing agreement that allows the broker to earn a commission if, upon the expiration of the listing agreement, the property is sold to a person with whom the broker or seller has negotiated or exhibited the property before the listing agreement expires. Minn. Stat. Article 82.66, subparagraph. 1(d) – (s). An expiry clause may not go beyond six months after the expiry of the rental agreement. Minn. Stat.
Article 82.66, subparagraph. 1(c). A broker may not attempt to impose an expiration clause, unless a backup list has been sent to the seller within sixty-two hours of the expiration of the listung contract, in order to provide a backup list for making available. Minn. Stat. Article 82.66, subparagraph. 1, point (d) 1. A protection list is the written list of the names and addresses of interested buyers with whom a broker negotiated the sale or lease of the property or to whom the broker had shown the property before the expiry of the reference contract. Minn. Stat.
Article 82.55, subparagraph. 16; Article 82.66, paragraph 1, point (e) The Minnesota Court of Appeals has ruled that a broker is entitled to a commission if the broker was the reason for the sale, even if the sale is concluded after the termination of the reference contract, provided that the broker complies with the expiry clause and the requirements of the safeguard list. Douglas v. Schuette, 607 N.W.2d 142, 145-6 (Minn. Ct. App. 2000); Lynn Beechler Realty Co. v. Warnygora, 396 N.W.2d 717, 719-20 (Minn. Ct.
App. 1986). So take the time to review with your client the expiration clause and requirements of the backup list to ensure that everyone is on the same page with the obligation to pay a commission after the expiration or termination of the listing contract. There are at least three types of listung agreements that can be used in commercial real estate transactions. The first and most common form is the exclusivity agreement.