The licensee buyout addendum is an important clause that should be included in any contract to buy and sell real estate. This clause is specifically designed to protect licensed agents and brokers who have invested time and money into marketing and selling a property on behalf of the seller.
In most cases, the licensee buyout addendum is used when the seller decides to terminate the listing agreement before the end of the contract period. This can happen for a variety of reasons, such as the seller finding a buyer themselves or deciding not to sell the property after all.
In such cases, the licensee buyout addendum allows the licensed agent or broker to receive a commission on the sale of the property, even if they are not directly involved in the sale. This is important because the agent or broker may have spent considerable time and resources marketing and showing the property to potential buyers.
The amount of commission that the agent or broker is entitled to will depend on the terms of the addendum and the amount of work they have put into the sale. Typically, the commission will be a percentage of the sale price of the property, and it will be paid out of the proceeds of the sale.
It is important for both the buyer and seller to understand the terms of the licensee buyout addendum before signing the contract to buy and sell real estate. This will ensure that there are no surprises or disagreements later on.
In general, the licensee buyout addendum is a fair and reasonable clause that protects licensed agents and brokers in the real estate industry. By including this clause in the contract, all parties involved can rest assured that they will receive fair compensation for their work and investment in the sale of the property.
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