Types of Listing - Home Selling

When you plan to sell your house with the help of a real estate agent, you should have some basic knowledge about the types of real estate listing agreements. The contact defines the roles and responsibilities of both the parties. As the agreement is legally binding on the parties, you have to read and understand them well, if necessary by hiring some legal experts. Though the real estate agreements vary from one place to another, usually industry standard and boilerplate forms are used. You can negotiate the terms and conditions of the listing agreements in your favor.

Your rights and responsibilities, level of service and the period of time depend upon the type of listing agreement signed by you and your real estate agent. ‘Exclusive Right to Sell’ is the most commonly used form of real estate listing contracts. By signing the agreement, you will be giving an exclusive right to your selling agent for listing and selling your home only for a specified period of time. The agent will get the commission from you in the end, normally from the proceeds of the sale. The agreement will be binding on you, even though you are able to get a buyer yourself. If the sale of your home is made by another listing agency, the first listing agency will split its commission amount, in the end, with the second agency.

Under an Exclusive Agency Agreement, which is similar to exclusive right to sell, you will allow the seller to sell the house without paying commission. In this case, the buyer will not be introduced to the house property by your agency. In an open real estate listing agreement, you will not be giving exclusive right to any agency to sell your property. You can sell your property yourself without paying commission to any agency. You can sign an open listing agreement with many agencies. Seller is entitled for whole of the commission without sharing with others.

As the real estate listing contract is your first step for selling your house property, take a well considered decision by understanding the terms and conditions and discussing the advantages and disadvantages of the agreement with professionals.

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