Source: RisMedia —
When you want to sell your home and hire a real estate agent or broker, you will sign a listing agreement with them. The most common type of listing contract is an exclusive right to sell.
But there isn’t only one type of listing contract that the broker will require you to sign before they will list your home.
We look at listing agreements and the different types you might encounter.
What is a real estate listing agreement?
The homeowner signs the listing agreement to give the real estate broker authority to sell their home. The contract gives the real estate broker the authority to represent the seller and their interests.
The agreement also sets out the Realtor commission that the homeowner will pay for the service provided by the broker.
Sometimes the term “listing agreement” can also refer to a contract between a company and a financial exchange like the New York Stock Exchange, but we are looking at the use of the term in real estate.
How does a listing agreement work?
Once the seller has signed the listing agreement, the broker has the green light to market their property to potential buyers.
It is one of the tasks a seller’s agent is responsible for when working with a seller.
This agreement is like an employment contract instead of a real estate contract where the property is transferred.
