I’m interested in a property and contacted the broker. He sent me a confidentiality agreement that contains the following statement:
PROSPECT agrees that he will not deal directly or indirectly with the SELLER during the term of the Business Listing Agreement; or within two years after the termination of the Business Listing Agreement without the BROKER’S written consent and should the PROSPECT do so and a sale, lease or other financial arrangement, including leasing the SELLER’s premises from the SELLER or Landlord is consummated, the PROSPECT shall be liable for all and any damages which the BROKER may suffer, including but not limited to the compensation which would have been payable on the listed selling price or minimum compensation, whichever is greater.
I struck through the “or 2 years after part”. Is this standard? I can’t control what the seller might decide to do if the broker’s listing expires.
We haven’t really dealt much with brokers so I kind of agree with your line of thinking here. Most of our opportunities come from dealing with the property owners directly so a clause like that would be a non-starter for me if it could actually be enforced. In any event, I would really like to hear what others have to say on this subject because we normally just sign it and forget about it. Knowing full well that once that metro comes up to be mailed/called again, we aren’t going to go through the trouble to remove that owner from our marketing campaign. I guess the way I see it is that if a deal makes sense then I’ll handle that bs later if it ever comes up. I’m probably way off base with this though! lol