Listing Agreements — Contracts with Sellers

A listing agreement is a contract between a seller and a real estate broker authorizing the broker to find a buyer.

Exclusive Right to Sell:

Most common listing type

Broker earns commission no matter who sells the property — even if the owner finds the buyer

Provides strongest protection for the broker

Exclusive Agency:

Only one broker is authorized

BUT — if the owner finds the buyer themselves, no commission is owed

Open Listing:

Seller can list with multiple brokers simultaneously

Only the broker who produces the buyer earns a commission

Owner can also sell themselves with no commission

Net Listing:

Broker keeps everything above a net price set by the seller

Illegal in many states due to conflict of interest

Key elements of all listing agreements:

Property description, listing price, commission amount/percentage, start and expiration date, broker's authority, seller's signature.

Reference:

Wikipedia: Listing Contract

https://en.wikipedia.org/wiki/Listing_contract