You and Your Listing Broker: Guide to Real Estate Property Listing Agreement
Do you plan to sell your real estate yet you think you do not have ample knowledge on how to properly do it?
Well then think twice. It is better to be equipped with adequate information so that you will end up reaping than losing.
A real estate is a permanent property such as a house, buildings, condominiums, and cottages affixed to a land.
There is a process so that you will be able to carefully and properly sell your real estate property. One process is to list and advertise your real estate property.
You as the owner will most likely contact a listing real estate agent. You will have to work hand in hand so that the selling of the property will be smooth and easy. The most important thing to complete is the listing agreement.
A listing agreement is a written contract among the seller and the listing real estate agent. In the agreement are the provisions that should be taken into consideration such as:
• Span of the listing period
• Sales price of the property
• Monetary condition such as commission of the agent and his company
• Other pertinent information discussed by the seller and the real estate agent
There are three fundamental types of listings agreements – exclusive right to sell, exclusive agency and open.
Exclusive Right to Sell
The real estate agent hired by the real estate property owner has the main responsibility to market your property. He will be the one to devise ways to advertise your property. Whenever there are interested clients he will have to accompany them to the property and do the sales talk. On the other hand, you can also do the selling part if you wish to. However do not be surprised if your listing agent will receive commissions either way.
There is a rational expectation of receiving commissions on this type of listing after the property has been sold.
Exclusive Agency
This type of listing agreement is not common since the agent and the company does not receive any monetary benefits if the property owner has found a buyer.
Real estate agents and company commonly views this type of listing agreement as a waste of effort, time and money because they are competing with the person who hired them.
If you intend to use this type of listing to market your property, do not look forward to a smooth and easy selling of your home. Most likely the agent or his company will just advertise your property under the Multiple Service Listing and will not thoroughly work for it.
Open Listing
You as the owner can choose and hire several agencies to sell your property. From these hired agencies no one has the absolute right to claim commissions unless they are the primary seller of the property. The good thing about this type of listing agreement is that when you find a buyer for your assets then you are not required to dole out any monetary benefits from agencies you once hired.
The listing agreement is not just a piece of document. It is a lawful contract which needs to be cautiously prepared, read and well-understood before even signing it. Details in the contract should be thoroughly discussed by you as the owner and your hired agent and his company.
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