Many listing agreements require the seller to provide written information about the property and some provide that the seller gives directions or insurance or guarantees regarding the condition of the property. Both of these provisions could cause problems for the seller. For example, the language that the seller makes available “all ownership documents” is too broad and could lead to possible liability of the seller if the seller does not accidentally divide the documents he did not disclose in his possession. Such a language could also be interpreted as allowing the seller to provide documents held by lawyers, engineers or seller management companies. And in the absence of an explicit characterization, the seller could be held liable if some of the documents, including those produced by third parties, contain false or false information. If the broker is not prepared to completely remove any obligation on the seller to provide documents, the seller should limit the requirement to the use of the seller`s “good faith efforts” to provide documents and provide that the seller`s obligation relates only to documents “in the seller`s possession.” The listing agreement should also provide that the broker must, at his own risk and peril, rely on all these documents and their contents. If the broker is a member of the National Association of Realtors, the agreement must contain all the following terms: Similarly, language is always a concern regarding disclosures, especially the large language. Often, the information requested relates to issues such as “gaps” in improvement, shingle issues, environmental issues or compliance with existing legislation. The seller should avoid such allegations. It is sufficient for the seller to negotiate carefully, in the sales contract, the insurance and guarantees relating to these issues with the potential buyers. The seller should not be required to participate in similar negotiations only to enter into a listing contract. In addition, most sales contracts contain a protective “AS-IS” language that counterbalances all explicit assurances and guarantees.
Most sales contracts also provide that all insurance or guarantees relating to the property will only survive the closure for a limited time. These restrictions are generally not addressed in the list agreement. Therefore, to the extent that the seller provides specific guidance, insurance or guarantees in the listing agreement, the seller may ultimately have a liability to the broker that is more expansionary than the seller`s responsibility to the buyer.
