I am writing this blog because I came across something today that shocked me. I was reviewing a Master Listing Agreement with a massive nation wide company, who will go unnamed. In one of it’s paragraphs it read…. “Listing Broker additionally agrees to indemnify and hold harmless the indemnitees for and from all claims brought by, through or under owner and EXPRESSLY INCLUDING WITHOUT LIMITATION THOSE CLAIMS PRETAINING TO OR ARISING FROM NEGLIGENT OR WILLFUL ACTS OF OMISSIONS OF (unnamed company).” In short, they are saying, the Listing Broker agrees to indemnify or secure them from hurt, loss or damage when they commit negligence or willful acts of omissions. Just so we are clear, the vast majority of insurance companies do not cover negligence or willful acts of omissions so, in other words, you, the listing agent, your broker are responsible for paying legal fees, judgments or whatever else they incur if they are ever sued, even if they are clearly in the wrong! What scares me the most, the Project Manager I was speaking with informed me, it’s just they way it is and since they have agents signing up left and right, it most likely isn’t going to be amended because, everyone is agreeing to this. READ YOUR AGREEMENTS AND HAVE THEM REVIEWED BY AN ATTORNEY. In my opinion, this is a horrible way to do business. I don’t know how you can get around it but, I am not doing business with anyone who has this type of agreements, it is just dangerous!
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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • WoW Troy, that is crazy.....

    All of my REO's and Short Sales are Exclusive Right to Sell. With that being said, most all of my agreements do have a mutual cancelation clause. In other words, I cancel our agreement without penalty the home goes back to the bank and I loose my Procuring Rights at that time and, vice versa.

    I am protected from simply being booted with out some form of causation.

    I simply can’t believe agents are signing these agreements. Why would you ever do business with someone who isn’t guaranteeing your commission, protecting your liability or simply being a good business partner?

    Some of these Realtors are bending over saying, “shaft me, PLEASE!”

    No, I don’t have any agreements that don’t provide me the Exclusive Right to Sell.

    Just so the rest of you know, I get my minimum 3% on everything I sell, even if the bank reduces commissions. You can ask me about that if you like….lol, seriously!
  • Hi Jesse - great post. I'm working to break into the REO arena and one of the master agreements I'm reviewing states that listings are not exclusive right to sell -- they can boot you at any time and sell to their prospect direct without a commission. Do you find this to be common?
  • What is really bad about the Indemnity Clause, it is most likely one of the top 3 REO companies in the country. I don't think a lot of the Realtors who are signing up are even reading the agreement. I passed it on to a couple of Attorneys and each one told me that they would strongly and emphatically implore their client agents not to enter into these agreements.

    Apparently if you add this agreement with the Consumer Protection Act, it could be that the Listing Brokers could be personally liable. In other words, these agents are risking their homes, bank accounts, assets and everything based on what someone else could or could not be doing correctly!!!!!

    By all intents and purposes, this is a slap in the face to Realtors and is foolish for any of us to enter into. It really scares me to think that hundreds if not thousands of Realtors across the country have or are entering into this agreement and don’t even have a clue about the Pandora’s box they just opened.
  • This is amazing - I would have thought along the lines of those other agents who are signing up no matter what, because they don't think it will matter anyway. Seeing this (your post) I would not enter into this type of agreement. Hopefully others will do the same, and help bring about changes needed. Jesse, thanks for contributing so vastly to our community, and getting information like this to be noticed. Knowing people like you, and many other true professionals on this site, makes me even happier to be in this business.
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