What is a Listing Contract?
A listing contract is a legal agreement between a homeowner and a real estate broker. It gives the broker the right to offer the property for sale.
“Exclusive right to sell” contracts are the most common. These give the broker the exclusive right to earn a commission by representing the owner and bringing a buyer – either directly or in cooperation with another broker.
A listing contract will typically include the following items: 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 (as well as the compensation amount or sales commission).
The listing contract authorizes the broker to cooperate with other brokers as sub-agents or buyer’s agents and also details the compensation to be offered to other brokers if they procure a buyer. Other contract terms may be added if needed. Your REALTOR® can answer any questions you may have.