What are the drawbacks of an exclusive contract on my rental property with a real estate agent?
I have a vacation leasing property in Costa Rica and I have received an place forward from a real estate agent for exclusive rights to the property for Friday, Saturday, and Sunday. Let me hear any perceived drawbacks anyone can reckon of.
If you rent it yourself you still need to pay the agent their fee.
Any time you give a weirder any “rights”, you are trusting that they will be honorable and that they won’t cheat you. And that they will work hard promoting your wellbeing. That is simple if you have worked with that self for years. Not so simple if you have never met them.
So enter a cancellation clause into any covenant. At any time you can unilaterally cancel the contract by paying her everything you owe her plus $250. If she won’t agree to that, she wasn’t looking out for you anyway.
Fortunately you do not need to enter in a cancel clause. You can withdraw this contract at anytime. But, this sounds very silly. An agent wants a 3 day contract? Just tell them to get busy and earn a commision. Realtors are usually uneducated and very legally ignorant people. They enter contracts all the time that are unlawful and would be thrown out of court in a heartbeat. I know, I challenged many and when a contract violates law – its void – its no excellent and 99% of these realtor contracts violate general law. Most people do not know this – you cannot enter anything into a contract that contradicts general law. For occasion someone might agree in writing to be your pimp – but since the law forbids it that contract is not vacant to be enforceable. Its the same thing no topic the subject or diligence. The realtor is just wasting time trying to look professional when in the end the opposite comes out – wasting time and really ignorant of legal framework.
The small of it is they know you are vacant to rent it. With an exclusive contract they will get a fee from you if YOU rent it. Which is what they are hoping for. They are toying with you so they can guilt you into a fee when you rent it yourself. Buyers agents do this all the time. Thats why they want contracts. They know they are terrible agents and the only way they can get $ from people is to have contacts then chase them if they have any activity. Excellent agents have no time for this.