What is a Listing Agreement?
A Listing Agreement is a contract completed by the Realtor® and seller. It covers information with respect to the property being offered for sale, outlining the pledged arrangement between the seller and the Brokerage.
The Listing Agreement suggests that the Realtor® act on the seller’s behalf to find a buyer/purchaser for the property. The contract outlines the terms and conditions of this agency relationship, including commission rate or method of compensation for the Realtors services, the length of time of the agreement, how the fee or commission is earned, how and when the commission will be paid to the agent and various marketing steps offered by the Realtor.
There are two types of listings to consider: Exclusive Listing and Multiple Listing
An Exclusive Listing gives the Realtor® a limited right to find a purchaser for the property. This arrangement is given to the Realtor® for a fixed period of time. The property will not be advertised on normal levels of a standard listing agreement, such as the Multiple Listing Service (MLS).
Multiple Listing gives a realtor the right to list the property on the MLS, a systemized database available to all Realtor® members. As with the exclusive listing, there is a minimum amount of days the listing is to be listed for by the Brokerage. For more information on MLS, please refer to What is MLS.
The seller cannot list the property with any other brokerage until the listing expires and when it remains unsold.