Real Estate Glossary

Knowledge Focus: Listing Agreement

Listing Agreement


A listing agreement is the employment contract (don't think of it as a real estate contract) which creates the special agency relationship between the property owner and the broker. Various types of listing agreements are used to establish the basic relationship between the two and provide different levels of specific rights and responsibilities for the listing broker. Standard national requirements for a listing agreement would include:

In Written Form.
Sales Price.
Agreement Termination Date.
Property Legal Description.
Brokerage Commission Basis.

Other optional examples, may include: how a property is to be marketed, number of open house days, owner financing, etc. There can be and often are other elements to a listing contract. Be sure to read the listing agreement very carefully and be sure you understand exactly what you are agreeing to before signing. Get full clarification before signing.




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