Here are guidelines on what is/is not acceptable in terms of listing agreement modifications demanded by owners. I would urge all of you to be smart and “play the role” when asked of a change can be accommodated. A better response to “Sure, kick me please!” is, “I’m sorry, I’m not allowed to do that…I would have to ask my Broker etc.” 

However, you do not have to Broker to make the following alterations. You can, for example, call the owner back and say: “I talked to my broker and he/she did not want to go along with this but I begged them because I like your property so much so they finally said yes!” or… “I tried everything I could because I really love your property and I know I could rent/sell it quickly, but we are not allowed to make changes in this agreement [better if you are SMART].”

Anyway here is a set of guidelines: 

Exclusive Agency: No. We do not accept listings where we are placed in direct competition with Owner. You may, however, exempt certain prospects. For guidelines and language link here .

Lower commission rate: No…don’t even ask. The Owner might ask, “But aren’t commissions negotiable?” You can say, “Yes, commissions are negotiable, however, we like to treat our customers equally.”

Short Listing Period for Sales: You may, if you absolutely must, use the following language:

“Owner may accelerate the expiration date of this listing by giving minimum one-week’s prior written notice to broker by Certified US Mail only after 90 days from effective date of this agreement.” 

Short Listing Period for Rentals: You may simply  alter the 180 days to 90 and have owner and Broker initial the change.

Renewal commissions on rentals: At the time of taking the listing you may bargain this down to 50% of normal commission or even delete the renewal provision entirely at your discretion.

You should not simply agree to this type of demand without bargaining about it…remember, they are often simply testing you to see how hard you will bargain for them  when a transaction comes in. It does not help you to be perceived as weak and pliant.

When the time comes for renewal, please be advised that we will not go to the mat for you with regard to whether or not the owner actually pays the renewal. Many owners who did not object to the concept when they were eager for you to get the place rented, bitterly resent having to pay for something where you did not “work” for the money. The fact that you found them a good tenant, who will not need a paint job or new carpet, will not leave the unit empty for 2-3 months while you find another tenant, etc. has no value in their eyes. Sometimes you can convince them  of the errors in their thinking, but sometimes not.

You can, at your discretion waive all or part of the renewal commission at the time that this comes up and you cannot overcome the owner’s refusal to see reason. I would suggest the following: “I’ll go back to my Broker and see if I can get it waived for you, since you are my good customer, and I want to help you out.” Don’t just cave in, let them think you actually went to bat for them and make yourself a hero in their eyes.

Prospect Exemption: See guidelines and language by linking here.

Reduced Commission for Owner Prospects:  Adapt the following language. Be specific and limited.

“Commission will be reduced to 3% in the case of a sale to John Doe, Joe Jones or Joe Blow for a period of 15 days from the commencement of this agreement”

Prospect Exemption:

When preparing our listing agreement for sale, the following language can be used, with appropriate modifications, to exempt a specific prospect for a limited period of time. Use under “Special Clauses” or, if insufficient space, add an addendum.

Owner and Broker agree to exempt a sale to owner’s prospect, [insert name] for a period of [insert time period] from the effective date of this agreement. If owner and [insert name] enter into a binding contract for purchase and sale of the Property prior to the expiration of this period, Owner shall immediately notify Broker in writing and furnish a complete and correct copy of contract to Broker immediately upon execution and that particular transaction shall not be commissionable under this agreement.