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Proposed Listing Agreement Language 

The Legislative Policy Committee of the New York State Association of REALTORS® recommends that each member board consider including provisions in their listing agreements to assist in the collection of commissions. The provisions set forth below are suggestions for each board to consider in conjunction with their legal counsel.

Escrow. If for any reason, the LISTING BROKER is not paid the compensation set forth herein on the due date, the OWNER shall establish an escrow account with a party mutually agreeable to LISTING BROKER and OWNER and shall place into said escrow account an amount equal to the compensation set forth herein. The escrow monies shall be paid by the seller to and be held by a party mutually agreeable to the listing broker and seller or, in the absence of mutual agreement, by the seller's attorney. These monies shall be held in escrow until the parties' rights to the escrow monies have been determined (i) by the written agreement of the parties, (ii) by order of a court of competent jurisdiction, or (iii) some other process to which the parties agree to in writing.

Attorney's Fees. In any action, proceeding or arbitration to enforce any provision of this Agreement, or for damages caused by default, the prevailing party shall be entitled to reasonable attorney's fees, costs and related expenses, such as expert witness fees and fees paid to investigators. In the event the LISTING BROKER hires an attorney to enforce the collection of any brokerage commission due hereunder and is successful in collecting all or any portion thereof with or without commencing a legal action or proceeding, OWNER agrees to pay such attorney's fees, costs and related expenses.

Arbitration. All claims, disputes or other matters in question arising out of or relating to this agreement shall be determined by arbitration before an arbitrator in the County of _________, State of New York, pursuant to the Commercial Arbitration Rules of the American Arbitration Association or other generally accepted arbitration standards currently in effect. The award rendered by the arbitrator shall be final and judgment may be entered upon it in accordance with applicable law in any court of competent jurisdiction.

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