A marketplace clause owes the fee on closing regardless of who sourced the buyer. Is that standard?
Here is a clause worth working through before anyone signs a marketplace listing agreement. Take a wholesaler about to list two contracts, reading the terms closely for the first time. The fee section says the platform is owed 3 percent of gross contract price on any property listed on the platform that closes within 120 days of listing, regardless of the source of the ultimate purchaser. There is a separate exclusivity paragraph saying the seller will not market the property through any competing marketplace during the listing period, defined as 45 days with automatic 45 day extensions unless written notice is given at least 10 days before expiry. So on a contract at 168k, that is 5,040 to the platform. If the expected assignment fee is 12k, the platform takes 42 percent of the spread even when the wholesaler's own buyer, someone he has closed four deals with, is the one who funds. And the auto-extension means the fee tail keeps rolling unless the notice date gets calendared every 45 days. One reading is that this is standard and everyone signs it. Another is that the clause only makes sense if the platform genuinely brings buyers the wholesaler cannot reach, and a wholesaler with 30 buyers of his own can already reach plenty. What is worth settling is whether 3 percent of gross with a source-blind trigger is actually the market convention here, or whether the wholesaler should be asking for a carve-out for named existing buyers before listing.