Video: What is a listing contract?
Friday Jan 15th, 2021
What do you know about listing contract?
A listing contract is a legal agreement between a real estate broker and an owner of real property granting the broker the authority to act as the owner's agent in the sale of the property.
“Exclusive Right to sell” is the most common type of listing contracts.
Here, the seller must pay the brokerage a commission if, by the expiration date in the listing contract, the real estate is sold, regardless of whether the buyer is obtained through the agency or not.
The following terms are included in the listing contract:
- A specific beginning and end date.
- The price at which the property will be offered for sale.
- Specific terms and conditions under which the broker will be paid by the seller.
The listing contract authorizes the broker to cooperate with other brokers as sub-agents or buyer’s agents.
If you have any questions, you can ask your REALTOR.