When entering into a listing agreement with a real estate agent, it`s important to ensure that the agreement clearly outlines all the terms and conditions of the transaction. A listing agreement is a crucial legal document that sets out the scope of services that the agent will provide, the duration of the agreement, and the commission that will be paid.
If you`re a seller, there are several key items that you should make sure are included in your listing agreement. Here`s a rundown of what your agreement should contain:
1. Identification of the property: The listing agreement should clearly identify the property being sold, including the address, legal description, and parcel number.
2. Exclusive right to sell: The agreement should state that the agent has an exclusive right to sell the property for a specified period of time, typically six months to one year. This means that if the property is sold during that time, the agent is entitled to the commission, regardless of who brings in the buyer.
3. Commission: The listing agreement should specify the commission rate that the agent will earn upon completion of the sale. The commission is usually a percentage of the sale price and is typically split between the listing agent and the buyer`s agent.
4. Marketing and advertising: The agreement should outline the marketing and advertising plan that the agent will use to promote the property. This may include traditional marketing methods such as print ads and open houses, as well as digital marketing efforts such as social media and online listings.
5. Listing price: The agreement should state the listing price for the property, as well as any price reductions or adjustments that may be made during the course of the listing period.
6. Disclosure requirements: The listing agreement should outline any legal requirements for seller disclosures, such as lead-based paint disclosures or disclosures about known defects in the property.
7. Termination: The agreement should provide a mechanism for terminating the agreement if either party is not satisfied with the services being provided.
In addition to these key items, your listing agreement may also include other provisions such as a provision for the agent to hold open houses, a requirement for the seller to make repairs or improvements before listing the property, or a provision for the agent to use a lockbox to facilitate showings.
It`s important to review your listing agreement carefully and to understand all the terms and conditions before signing. If you have questions or concerns, don`t hesitate to ask your agent for clarification. With a clear and comprehensive listing agreement in place, you can be confident that you`re on the right track towards a successful sale.