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If I receive an offer on my listing and it gets accepted,

and the Listing Contract ends...
If I receive an offer on my listing and it gets accepted, and the Listing Contract ends shortly thereafter, does the Listing contract need to be extended through the end of escrow? Or does the purchase agreement hold the transaction together? (What if we are negotiating and the listing agreement ends?) Thank you.
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Answered in 11 minutes by:
11/23/2017
Gerald, Esq
Gerald, Esq, Lawyer
Category: Legal
Satisfied Customers: 5,226
Experience: Over 30 years of experience
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Hello,
Thank you for using Just Answer. Please bear with me while I review your question. I will respond fully shortly. Thank you for your patience.

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Hello,

Thank you for your patience and thank you for asking for me. I want to provide you the best service I can. Please feel free to ask any follow-up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

There is a legal doctrine that covers these situations. It is referred to as the procuring cause.

If the seller is introduced to the buyer during the time period while the listing contract is in place, then your listing broker is considered the procuring cause of the sale. The listing broker is entitled to the listing commission even if the deal is not completed until after the listing agreement expires.

California law provides:

"A Broker who is, in fact, the primary procuring cause, will not be deprived if his commission merely because negotiations were completed through someone else, even perhaps, without broker having personally met or communicated with the Buyer." Sessions v. Pacific Imp. Co. 57 Cal.App 1

I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow-up questions, feel free to ask.

If you ask a follow-up question and I do not respond immediately, it is because I am temporarily unavailable. I promise to respond as soon as I return. Please note that I am often unavailable Friday evening through Sunday.

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Good luck.

Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Kind regards,

Gerald

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also see:

https://law.justia.com/cases/california/court-of-appeal/4th/29/1516.html

Good luck.

kind regards,

Gerald

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Customer reply replied 6 months ago
Thank you. I think you are answering my initial question. Please see below a new question. and Happy Thanksgiving. :)Here is the question again regarding the law of contracts: My concern is If I receive an offer on my listing and it gets accepted, and the Listing Contract ENDS shortly thereafter, does the Listing contract need to be extended through the end of escrow? Or does the purchase agreement hold the transaction together? (What if we are negotiating and the listing agreementends?) Thank you.
The listing agreement does not need to be extended. BUT many brokers will ask you to do so to keep things clean and simple. It really isn't necessary because you have the purchase agreement and for the reasons already discussed above.
Gerald, Esq
Gerald, Esq, Lawyer
Category: Legal
Satisfied Customers: 5,226
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Customer reply replied 6 months ago
What if the listing ends and the selling agent brings an offer from a buyer that already has seen the home while under contract.
There is a time limit in the contract that protects the agent for a little time after the contract expires.
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