Definition of "Override"
In the business world, the definition of override means a salesperson paying a commission to a supervisor or another agent.
The meaning of override refers to an arrangement for acquitting a particular profit-sharing based on a successful sale. A subordinate sales representative makes this payment for a manager or broker.
Override in the real estate business
In real estate, you can find the meaning of override primarily under the override clause.
Listing agents in the ‘limelight.’
Selling a home starts with being present on listings. Sometimes local real estate agents work together with listing agents who have Exclusive Listings Agreements. Override is an essential part of the bilateral contract between listing agents and sellers. A listing agent can specialize in niches and use marketing tools other than buyer’s agents.
The importance of the listing agreement
Clients tend to overlook a significant part of the real estate transaction process, namely the negotiation and reviews of the listing contract. These agreements are not mere templates, and the conditions therein are negotiable. It’s not only the home seller who benefits from an accurate listing agreement and reviews but a broker too. A real estate representative must obtain a written and signed listing contract to start an action to get back an overdue commission.
Now, a listing agent retains the right to receive a fee or allowance for a property sale for a specific period after the contract expires, starting from the closing day.
An override clause protects listing agents.
Typically, override defines a clause in a property listing agreement. Suppose a broker shows a property to a buyer, and the client purchases the house within a well-defined time after the listing contract ends. The above-said clause stipulates a reimbursement in a commission that the listing broker gets. In such cases, an override safeguards the broker’s interests after the listing period. As we know, sales activities prove lucrative only later.
Listing agents can't run out of time.
There are extreme cases. Often, override protects the listing agent from speculative buyers. These clients discover a property from a realtor and enjoy the agent’s unconditional attention. The agent can organize property inspections. However, some buyers will only want to time their offer after the listing date expires. Buyers speculate and hope the house seller will lower the real estate price, meaning that the seller is not obligated to pay a fee from sales profit. In such cases, the override clause or provision offers substantial legal protection for the listing agent.
Efficient marketing and listing services fascinate you? Please take advantage of the RealEstateAgent.com directory listing with its many perks!
Popular Real Estate Terms
Same as term appraisal: Valuation assessment of real property by an expert third party for the following purposes: developing a realistic market price. setting a market value at the time ...
The modified accrual method is defined as an alternative accounting method that combines the two basic methods of accounting, the accrual method and the cash method. While the accrual ...
Representative house, apartment, or cooperative used as a sales tool to show how the actual unit bought will probably appear in design and construction. An example is a model apartment. ...
Expert in real estate who has an education in real estate appraisal as well as having significant professional experience. A recognized license may be obtained from the Member Appraisal ...
Transfer of both real and personal property. An example is the sale of a home with personal belongings. Putting together a group of property to be sold together, perhaps at a discount ...
Local regulation on how real property may be used in a particular locality. The county may establish different zoning classifications and restrictions. If the ordinance is violated, ...
Property having an easement right through another adjoining property. The property through which the easement passes is considered to have the servant tenement. ...
(1) That portion of exposed beach formed by waves depositing sand as they dissipate on the beach. The size of the berm commonly varies with the season. In the summer, the waves move sand ...
fee to use a bridge or tunnel. Fee assessed to use someone else's property. ...
Have a question or comment?
We're here to help.