A listing agreement is a legally binding contract that outlines the terms of the relationship between a real estate broker and a seller. It is a contract between a real estate agent or broker and a seller, outlining the terms and conditions under which the agent will market and sell the property. The listing agreement typically includes the property’s asking price, the duration of the agreement, the fees the listing agent will receive, the fee the buyer agent will receive, and any specific conditions or restrictions related to the sale of the property.
When signing a listing agreement, the seller gives the agent or broker the exclusive right to market and sell the property during the specified period. This means that the seller cannot hire another agent to sell the property during that time without first terminating the existing agreement.
Listing agreements may also include specific details about how the property will be marketed, such as the use of photography, showing services, online listings, and open houses. In addition, the agreement may include notices, warnings, rights, restrictions, contingencies, addendums, and conditions that must be met for the sale to be completed.
Review your listing agreement carefully before signing and consult an attorney if needed to help understand the terms.