Complete the agreement
The separate Compensation Agreement must be executed and delivered within the stated number of days after Effective Date—three days if the blank is empty.
Paragraph 19 · Addendum GG
The purchase can move forward before broker compensation is finalized—but only with a carefully timed contingency.
Addendum GG makes the contract contingent on the seller or seller’s broker entering a separate compensation agreement with Buyer Broker on terms acceptable to the buyer.
What Addendum GG does
It gives the buyer a protected window to secure a separate compensation agreement.
A buyer may be ready to submit an offer before the seller side and Buyer Broker have completed compensation negotiations. GG allows the purchase contract to be signed while making it contingent on a separate acceptable agreement being executed and delivered within the rider’s Time Period.
If that does not happen, the buyer receives a second, short window to terminate in writing and recover the Deposit.
Two clocks
Agreement period first. Cancellation period second.
The buyer’s cancellation right does not run simultaneously with the first deadline—it begins after the compensation Time Period expires without timely execution and delivery.
3 + 3Default agreement period plus cancellation period
Buyer may terminate
Buyer then has three days to deliver written termination notice. Without timely notice, the contingency has no further force or effect.
Six rider mechanics
Parties, documents and deadlines must remain distinct.
Select the payor path
Choose Seller’s Broker with Buyer’s Broker—or Seller directly with Buyer’s Broker.
Complete the Time Period
Enter the agreement deadline; if left blank, the rider supplies three days after Effective Date.
Terms acceptable to buyer
The separate agreement must contain compensation terms the buyer finds acceptable.
Execute and deliver
Signing alone is insufficient if the completed agreement is not also delivered within the Time Period.
Three-day termination right
If no timely agreement is completed and delivered, buyer may cancel in writing within three days thereafter.
Contingency expires
If buyer does not timely terminate, GG loses further force and the purchase contract continues.
Choose the correct agreement path
Who promises compensation changes the parties to the separate document.
GG requires one checkbox. The selected path identifies who must enter the Compensation Agreement with Buyer Broker during the Time Period.
The purchase contract remains between buyer and seller. The separate compensation agreement is between Buyer Broker and either Seller’s Broker or Seller, depending on the selected path.
Do not leave the payor path ambiguous. CABB and CASB documents involve different parties and different sources of payment.
Executed and delivered
A signed agreement sitting in someone’s inbox may still create a timing dispute.
The rider requires the Compensation Agreement to be both executed and delivered within the Time Period. Everyone should identify the authorized delivery method, recipients and proof of delivery before the deadline approaches.
The buyer should receive enough information to determine whether the compensation terms are acceptable. If the agreement is incomplete, late or unacceptable, the buyer should obtain prompt legal guidance about the termination window.
1
Negotiate
The selected compensation parties agree on amount and terms.
2
Execute
Every required party signs the separate Compensation Agreement.
3
Deliver
The completed agreement reaches the required recipient within the Time Period.
4
Buyer evaluates
The buyer determines whether the delivered terms are acceptable.
If the agreement is not timely completed
The buyer has a choice—not an automatic termination.
The purchase contract remains alive unless the buyer timely exercises the written cancellation right.
Cancel in writing
Buyer may deliver written notice to Seller terminating the purchase contract.
Deposit refunded
The Deposit returns to buyer and buyer and seller are released from further contract obligations.
Contingency disappears
GG has no further force or effect, and buyer cannot assume the purchase contract ended automatically.
GG versus FF
GG waits for an agreement. FF creates a credit.
They solve related compensation questions through different parties and contract mechanics.
Compensation-agreement contingency
Buyer may terminate if the selected seller-side party and Buyer Broker do not timely execute and deliver acceptable separate terms.
Buyer–seller closing credit
Seller gives buyer a purchase-contract credit toward the buyer’s separate broker-compensation obligation, subject to lender and agreement limits.
Before using GG
The rider is most useful when compensation could not be finalized before the offer.
Buyer and Buyer Broker
- Confirm the buyer’s existing brokerage obligation.
- Choose the correct seller-side compensation party.
- Complete a workable Time Period.
- Calendar the Effective-Date-based deadline.
- Track both execution and delivery.
- Evaluate whether the agreement terms are acceptable.
- If unsuccessful, calendar the next three days immediately.
- Deliver written termination on time if buyer elects to cancel.
Seller and Seller’s Broker
- Understand that GG is a purchase-contract contingency.
- Confirm who was selected to negotiate with Buyer Broker.
- Use the correct separate compensation form.
- Do not confuse assent to GG with assent to an amount.
- Negotiate, execute and deliver before the deadline.
- Preserve proof of delivery.
- Watch for timely buyer termination after an unsuccessful period.
- Remember that compensation is fully negotiable.
A practical timeline
The blank deadline controls the first clock; the rider fixes the second.
Clock 1 begins
The selected parties begin negotiating the separate Compensation Agreement.
Agreement deadline
Acceptable terms must be executed and delivered within the Time Period.
Clock 2 begins
Buyer receives three days thereafter to choose whether to terminate.
Cancel—or continue
Timely notice ends the contract; silence allows the GG contingency to expire.
Frequently asked questions
Florida Addendum GG, in plain English.
Is Addendum GG itself a compensation agreement?
No. GG is a purchase-contract contingency requiring a separate compensation agreement to be executed and delivered.
Who can enter the separate agreement with Buyer Broker?
The rider allows one of two selected paths: Seller’s Broker with Buyer’s Broker, or Seller directly with Buyer’s Broker.
How long is the Compensation Agreement Time Period?
The parties enter the number of days. If the blank is empty, the rider defaults to three days after Effective Date.
Must the agreement only be signed by the deadline?
No. The rider requires the Compensation Agreement to be executed and delivered within the Time Period.
What if the compensation terms are unacceptable to buyer?
GG requires terms acceptable to buyer. The buyer should obtain immediate guidance and track the written termination window if acceptable terms are not timely delivered.
Does the purchase contract automatically terminate if no agreement is reached?
No. Buyer must timely deliver written termination notice within the following three-day window.
What happens if buyer does not timely cancel?
The GG contingency has no further force or effect and the purchase contract continues under its remaining terms.
Must FF and GG be used together?
No. FF creates a seller credit to buyer, while GG creates a contingency for a separate compensation agreement. The transaction may need one, the other or neither.
Compensation was not finalized before the offer?
GG can protect the buyer—but only if both clocks are managed precisely.
DW&Co. can help coordinate the purchase rider, separate compensation documents, delivery record and appropriate Florida legal, title and brokerage guidance.
Talk with DW&Co. Real Estate