Pay $500 if Cancelling Listing Agreement ?
We've lived in several states California and Arkansas, and I have never heard of a clause whereby the listing agreement states the seller must pay $500 to cancel the contract. We listed our home here in Florida last year and the first agency deleted the clause at our request, they were terrible and we wanted to cancel in the first month but were reluctant to because we thought they'd sue us.
Now we have approached another listing agent and they may also have that same clause and are trying to tell me it protects the company from the sellers canceling and selling to someone they know. But isn't that potential already covered in the contract about selling within so many months of the house being listed?
Legally I think a contract is a contract and if either party breaches the contract it is null and void; they just want us to pay for their advertising up front I guess, what do you think of this clause in the listing agreement?