The listing agreement is short and consequential. Six clauses decide what you pay, how long you are committed and whether you can leave, and all six are negotiable before signature. Most sellers negotiate the commission and none of the others.
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Term, exclusivity and termination
How long the firm has the exclusive right to sell, and how you get out. Six to twelve months is common. Ask for a termination right on reasonable notice, so a firm doing nothing can be replaced. An agreement with no exit and a twelve month term is a year of your life delegated to somebody you have just met.
Fee, minimum and what triggers it
The commission rate, the minimum fee, and precisely what event triggers payment. Watch for wording that makes the fee payable on a signed agreement rather than on a completed sale, or on an offer at the asking price whether or not you accept it. Both exist and both are worth striking.
The tail, and marketing charges
The tail should cover only buyers the firm actually introduced, listed in writing when the agreement ends. Any marketing charge should be capped and stated. If the firm wants to syndicate your listing to other sites, check what that means for confidentiality and for who claims an introduction later.
Questions people ask about business broker contract
Should I sign an exclusive agreement?
Usually yes for a defined period, because a firm will not invest in a buyer approach without one. Keep the period short enough that inaction has a consequence.
Can I have a lawyer review it?
Yes, and it is an hour well spent. Sellers who do this regularly save more than the review costs on the tail alone.
What if I sell to someone I already knew?
Ask for named buyers to be carved out at the start. Otherwise an exclusive agreement usually makes the fee payable regardless of who found them.