A residential listing agreement is a legally binding document that outlines the terms and conditions between a homeowner and a real estate agent. This agreement gives the agent the exclusive right to list and sell the property on behalf of the homeowner. The purpose of this article is to provide a detailed example of a residential listing agreement and offer insights on how to navigate this important agreement.
Overview of a Residential Listing Agreement
A residential listing agreement is a contract that outlines the terms and conditions between a homeowner and a real estate agent. The agreement typically covers the following:
1. Property Information: This section of the agreement includes information about the property being listed, such as its address, type, and size.
2. Commission Rates: This section outlines the commission rate that the agent will receive once the property is sold. The commission rate can vary depending on the market and the specific agent.
3. Duration of Agreement: The duration of the agreement is typically between three and six months, though it can be longer or shorter depending on the market and the agent.
4. Advertising and Marketing: This section outlines the advertising and marketing strategies that the agent will use to sell the property. This includes online and offline marketing efforts and open houses.
5. Termination Clause: This section outlines the circumstances in which the homeowner or agent can terminate the agreement.
Example of a Residential Listing Agreement
Here is an example of a residential listing agreement:
This Agreement („Agreement”) is made on the ____ day of ____, 20____, by and between ____ („Homeowner”) and ____ („Agent”).
1. Property Information: The property being listed is located at ____ (the „Property”) and is a single-family home with ____ bedrooms and ____ bathrooms.
2. Commission Rates: The commission rate for the sale of the property is ____% of the final sale price. The commission rate is payable to the agent at the time of closing.
3. Duration of Agreement: This Agreement shall be in effect on the ____ day of ____, 20____, and shall terminate on the ____ day of ____, 20____, unless extended by mutual agreement of the parties.
4. Advertising and Marketing: The agent shall use their best efforts to advertise and market the Property for sale. This includes online advertising on various real estate websites, print advertising in local newspapers, and open houses.
5. Termination Clause: Either party may terminate this Agreement upon thirty (30) days` written notice to the other party. However, if the Property is under contract at the time of termination, this Agreement shall remain in effect until the transaction is complete.
A residential listing agreement is a critical document that outlines the terms and conditions between a homeowner and a real estate agent. As a homeowner, it is essential to understand the details of this agreement and its implications. It is also important to work with a reputable and experienced real estate agent who can guide you through the process and help you understand the agreement. With this information, you can make informed decisions and successfully navigate the process of selling your home.