A listing agreement is one of the first and most important documents you will encounter when selling a home. This is a legally binding agreement between the owner (seller) of a property and the property broker (and its agent) that allows the sale and sale of property.
It is essential for sellers to understand the terms of a real estate listing agreement. It not only sets expectations about how the property is sold and sold, but also provides legal protection in the event of disagreements. So, whether you’re selling a family home in Fayetteville, or a holiday home in Miami, Florida, delve deeper into what your listing agreement is, the different types available, and the most important considerations before signing.
What is a listing agreement?
A listing agreement is a contract between a homeowner and a real estate broker who approves the broker and expands its agents to sell and sell the property. This document, often referred to as a seller broker agreement or seller agent agreement, provides an overview of the terms of representation, fee fees, and duration of the relationship. Without a signed listing agreement, the real estate agent has no authority to represent the seller in the transaction.
Important aspects of a listing agreement
Although details may vary depending on broker and state regulations, most listing agreements include the following important components:
Permission for sale
At its core, a listing agreement gives the broker the authority to act on behalf of the seller. This can take the form of an exclusive right to sell less restrictive forms, such as if the property is on sale during the contract period, if the agent is guaranteed by the committee, or if an exclusive agency listing agreement.
Expression conditions
The document specifies the type of service the agent provides. This includes real estate preparation and marketing, hosting shows and open houses, and negotiation of offers. Set expectations for agents to actively represent the seller.
Committee structure
One of the most scrutinized elements of a seller agent agreement is the committee agreement. This fee, usually expressed as a percentage of the final selling price, is paid when the property is sold successfully. Some agreements may also address how the committee is divided between the listing broker and the buyer’s agent.
Contract period
A contract specifies the start and end dates of the expression. The typical period ranges from 90 to 180 days, but this can be negotiated. Sellers should carefully review this term to ensure they are satisfied with the length of their commitment.
Seller and Agent Responsibility
The listing agreement clearly outlines the obligations of the parties. Sellers must provide accurate real estate disclosure, maintain the property in a show-enabled condition, and grant reasonable access to the show. Agents are expected to sell the property, communicate with the buyer and their agents, and guide the seller through negotiation and closure.
Property Description
Most contracts include a detailed description of the property for sale. This includes not only addresses and sizes, but also equipment, appliances, or personal property included in the sale.
Dual Agent Regulations
In some states, a listing agreement may address the possibility of a double agent in which the same agent represents both the buyer and the seller. This arrangement is controversial as it raises questions about loyalty and fiduciary duties, but is legal in certain jurisdictions if the parties disclose and agree to it.
Additional Terminology
Beyond the basics, a real estate listing agreement may also cover list prices, the specific marketing strategies used, and terms for early termination. Regulations on the period of protection may be included. Meanwhile, even if the property is sold after the contract expires, the agent will still be qualified to the committee, and the dispute resolution clause is a dispute resolution clause such as mediation or arbitration.
The importance of listing agreements
Listing agreements are not just about documents. This is an important part of ensuring smooth, professional and legally compliant sales, and encourages:
Legal Protection: By clearly defining the relationship between seller and agent, the contract protects both parties from misunderstanding and potential disputes. Transparency: Explain in writing conditions that ensure that there is no ambiguity about liability, committee, or timeline. Smooth Transactions: With expectations clearly stated, listing agreements help streamline the sales process, reduce the chances of disputes, and make it easier to attract buyers and focus on sales deadlines.
Different types of listing agreements
Not all listing agreements are created equal. Sellers need to be aware of the different types available and how each affects their rights and obligations.
Exclusive Sale Listing Agreement: This is the most common type of exclusive sales listing agreement. Under this arrangement, the broker will win a committee, regardless of who brings in the buyer, it will be the agent, another agent, or even the seller himself.
Exclusive Agent Listing Agreement: This form gives brokers the exclusive right to sell the property, but sellers can avoid paying commissions if they find a buyer independently.
Open List: With this option, sellers can work with multiple agents at the same time, and only agents who protect the buyer are eligible for the committee. Although it is flexible, this approach often results in less commitment from the agent.
Non-exclusive listing agreements: This type is similar to open listing, but formalizes the right of multiple agents to work on a property at once, with only successful agents earning fees.
Netlist: In netlists, sellers set minimum allowable prices, and agents hold as committees more than that. Although it is still legal in some states, such as Texas, the practice is considered controversial and is banned in many states.
Important considerations for listing contracts
Keep these points in mind before signing a seller broker agreement.
Negotiation of terms: Review committee percentage, length of agreement and termination clause. Understanding the protection period: Some contracts allow agents to request a committee, whether they introduce a buyer during the contract or after the contract expires. Seek professional advice: Consider consulting with a real estate attorney to ensure that your contract meets your needs.
Also, remember: no compensation offers are required. Decide whether to provide rewards to the buyer’s agent. Real estate agents can guide you through market trends and strategies, so you can make the best choice for your situation.
Before signing a listing agreement, you need to check five things
The entire listing agreement is important, but you can revisit five important details in seconds.
Listing Price Agreement Expiration Committee Fees and How It Split with Buyer Agent Type of Listing Agreement Type of Your Personal Property Type is not included in the transaction or not included
These details are easy to see, but they are not just about what you should look for in your listing agreement. Read it over and over again as it is necessary to fully understand what is included.
FAQ regarding contract listing
What happens when my listing agreement expires?
Once the listing agreement is over, the seller is free to sign a new agreement with the same agent, choose another agent, or sell independently.
Can I terminate my listing agreement?
Often, yes. Most agreements include termination clauses, but the seller may need to provide written notice. In some cases, brokers may need to pay for marketing fees.
Can I negotiate a listing agreement?
You can negotiate several parts of your listing agreement. These include agent committees, agent obligations, list price, contract period, and list type. Most small changes can be made correctly in a contract, but you may need to make major changes to the addendum at the end of the contract.
How much does a listing agreement cost?
It is usually not cost to sign the listing agreement itself. You probably won’t pay anything in advance, but the contract specifies the broker or agent fee. This fee is paid upon closing after the title company confirms the clear title and the property is officially signed by the buyer.
What if my house doesn’t sell?
If your home is not on sale within the time frame outlined in your listing agreement, you have two options. Renew your contract and keep your current agent or hire another agent. If you choose to find a new agent, please check the Termination section of your contract to ensure you do not pay for any fees incurred during the listing period.
Can I make changes to my listing agreement after signing it?
Yes, but only if all parties agree. Most changes to a listing agreement are made in writing directly through the agreement itself or through the listing agreement addendum (details will be added at the end of the document).
Redfin does not provide legal advice. This article is for informational purposes only and does not replace professional advice from licensed lawyers.
