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The Listing Agreement

A contract between a landowner (as principal) and a licensed Real Estate broker (as agent) by which the broker is employed as agent to sell Real Estate on the owner’s terms within a given time, for whose service the landowner agrees to pay a commission.

Generally, two types:

1) Exclusive right-to-sell Listing Agreement: An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.

2) Exclusive-Agency Listing: A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker. Most commonly used with Flat fee MLS listings.