Listing Agreements
For Added Clarity, Your Information, and Continuity, Find: NYS Seller's Disclosure Form & Generic Purchase Offer at Page Bottom
A listing contract is an agreement between you and a licensed real estate broker. It authorizes the broker/agent to represent you in selling your home. Here are the 4 primary listing agreements currently used in the industry:
- Exclusive Right to Sell
- Exclusive Agency Listing
- Open Listing
- Showing Listing
Exclusive Right to Sell Listing--Most Common Listing Agreement and Why:
This is the most popular type of listing with sellers and brokers. Under a right to sell listing contract, the broker is the only one authorized to sell your home. If another agent finds a buyer, your broker earns a commission. If you find a buyer on your own, your broker still earns a commission. This arrangement gives your broker the most incentive to spend time, money and energy marketing your home. Especially to the other agents in the area who can show your home to their buyer clients. Only with an exclusive right to sell agreement can you expect to get a full service marketing effort from your broker, since it is the only listing type that assures a broker will get paid for his marketing expense and efforts when the home sells.
SAMPLE ONLY--NOT FOR PUBLIC USE
THIS IS A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, WE RECOMMEND CONSULTING AN ATTORNEY BEFORE SIGNING.
Owner(s):______________________________________________________________________ Address:______________________________________ Tax Map Number:__________________ City:__________________ State:________ Town: ______________County:_________________
1. Grant of Exclusive Right to Sell/Price. In consideration of ____________________________________ (hereinafter referred to as BROKER) submitting the above described property to the Multiple Listing Service of the County Board of Realtors, Inc. (hereinafter referred to as MLS), under its Rules and Regulations and in further consideration of said BROKER undertaking to find a purchaser for said property, the undersigned, (hereafter referred to as OWNER), represent(s) that they are the sole and exclusive owner(s) and are fully authorized to enter into this agreement, and do(es) hereby give to said BROKER the sole and exclusive right to sell said property for $___________________. The OWNER authorizes the BROKER to submit this listing to the MLS and make an offer of cooperation and compensation to all participants of the MLS and to any other cooperating agents authorized under law to receive a commission. OWNER authorizes BROKER to submit this listing to the MLS.
2. Term. Listing agreement shall start on ___________________and end at midnight on _____________.
3. OWNER'S Authorization and Obligation. To facilitate and expedite the sale of the said property, OWNER:
a. Authorizes BROKER to make and use photographs of said property and to market it, which may include advertising, showing the premises to prospective buyers and allowing cooperating brokers to show the property to prospective buyers.
b. Grants BROKER exclusive "FOR SALE" sign privileges.
c. Consents that the property may be shown at any reasonable hour.
d. Agrees to refer any and all inquiries concerning the property to the BROKER.
e. Authorizes BROKER to accept and hold in an escrow account all deposits made by a purchaser until closing, or cancellation of the contract by mutual consent of all parties.
f. In the Event OWNER decides to rent the property, OWNER grants exclusive rental privileges to BROKER, as well as the exclusive "FOR RENT" sign privileges upon amount of rent, compensation and terms to be negotiated by separate agreement between the parties, if both parties are willing to do such.
4. Fair Housing. It is agreed that this property is listed in full compliance with local, state and federal housing laws against discrimination on the basis of race, color, religion, sex, national origin, handicap, age, marital status and/or familial status, or other prohibited factors.
5. Purchasers Mortgage. OWNER agrees to accept a purchase offer contingent, for a reasonable period of time, on the purchaser's ability to finance the purchase price by any of the prevailing methods of mortgage financing. Any other type of mortgage loan or financing must be approved by OWNER.
6. Key. OWNER will provide BROKER with a key. OWNER understands that by providing BROKER with a key to the property this does not in any way make the BROKER the custodian of said property or responsible therefore.
______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
SAMPLE ONLY--NOT FOR PUBLIC USE
7. Lockbox. OWNER_________ does or _________does NOT authorize the use of a lockbox.
8. Brokerage Fee: Amount, When Due and Payable. If, during the period of this agreement, or any extension thereof, a transfer, sale or exchange of the property is made, effected, or agreed upon with anyone, the OWNER agrees to pay the BROKER a commission of ____________(% of gross selling price or definitive amount). Further, this commission will be due and payable if after the expiration date of this agreement and within __________________thereafter, a purchaser contracts to buy the property who was shown the property by a licensed agent or participant in the MLS and /or made aware of the property by a participant in the MLS or the OWNER during the term of the listing, or any extension thereof, provided the OWNER has been personally introduced to or has received written notification of the prospective purchaser before or upon termination of this agreement or any extension thereof. The OWNER shall not be obligated to pay such commission if a valid listing agreement is entered into during the term of such protection period with another licensed real estate broker and said sale, lease, transfer or exchange of the property is made by such broker during the term of said protection period.
9. Compensation Offered to Cooperating Brokers.
Sub Agency is ______ or is not ______ authorized. Commission offered by BROKER to Sub Agents is________% or $________,
Buyer Agency is_____ or is not _______ authorized. Commission offered by BROKER to Buyers Agents is ________% or $________,
Broker Agency is ______ or is not _______ authorized. Commission offered by BROKER to Brokers Agents is ________% or $________,
10. Termination. OWNER understands that if OWNER terminates BROKERS's authority prior to expiration of the term of this agreement, BROKER shall retain its contractual rights to a commission and recovery of advertising expenses and any other damages incurred by reason of an early termination of this agreement.
11. Board and Multiple Listing Service Not Agents. Owner understands and agrees that the BOARD and the MLS are not the OWNER's agents and that none of the terms of this agreement shall make them the OWNER's agents.
12. Commission Escrow Act Section 294-b of the Real Property Law. At the time of closing, you may be required to deposit the broker's commission with the county clerk in the event that you do not pay the broker his or her commission as set forth herein. Your obligation to deposit the broker's commission with the county clerk may be waived by the broker.
The OWNER has read and understands the entire agreement and does hereby acknowledge receipt of a copy thereof (Owner Initial) _______. A copy will be mailed to me__________(Owner Initial.) This agreement shall be binding upon the parties hereto. Agreed and accepted by:
______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
EXPLANATION: Rule 175.24 of the Rules and Regulations under Article 12A of the Real Property Laws requires the following explanations:
An "Exclusive Right to Sell" listing means that if you, the owner of the property, find a buyer for your house, or if another broker finds a buyer, you must pay the agreed commission to the present broker. An "Exclusive Agency" listing means that if you, the owner of the property, find a buyer, you will not have to pay commission to the broker. However, if another broker finds a buyer, you will owe a commission to both the selling broker and your present broker.
______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
Exclusive Agency Listing
This is similar to the right to sell listing, with the significant difference that you reserve the right to sell your home yourself and not pay the broker a commission. The broker only gets paid if your home is sold through a licensed real estate professional. If you find your own buyer and sell the home yourself, you pay no commission. On the face of it, this might sound like an attractive arrangement. But it's not a popular listing type with brokers, and for good reason. Under an exclusive agency agreement, the broker is exposed to the risk of putting forth considerable effort and expense marketing your home, only to come away empty handed. The attraction to the seller of this type of contract of course, is the possibility of finding their own buyer and not paying a commission. This puts the seller and broker in competitive roles, which usually isn't in the best interest of either party. Since the broker stands a good chance of not reaping any reward, it's unlikely that any effort or expense will be put into marketing an exclusive agency listing.
THIS IS A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, WE RECOMMEND CONSULTING AN ATTORNEY BEFORE SIGNING.
Owner(s):______________________________________________________________________ Address:______________________________________ Tax Map Number:__________________ City:__________________ State:________ Town: ______________County:_________________
1. Grant of Exclusive Right to Sell/Price. In consideration of ____________________________________ (hereinafter referred to as BROKER) submitting the above described property to the Multiple Listing Service of the County Board of Realtors, Inc. (hereinafter referred to as MLS), under its Rules and Regulations and in further consideration of said BROKER undertaking to find a purchaser for said property, the undersigned, (hereafter referred to as OWNER), represent(s) that they are the sole and exclusive owner(s) and are fully authorized to enter into this agreement, and do(es) hereby give to said BROKER the sole and exclusive right to sell said property for $___________________. The OWNER authorizes the BROKER to submit this listing to the MLS and make an offer of cooperation and compensation to all participants of the MLS and to any other cooperating agents authorized under law to receive a commission. OWNER authorizes BROKER to submit this listing to the MLS.
2. Term. Listing agreement shall start on ___________________and end at midnight on _____________.
3. OWNER'S Authorization and Obligation. To facilitate and expedite the sale of the said property, OWNER:
a. Authorizes BROKER to make and use photographs of said property and to market it, which may include advertising, showing the premises to prospective buyers and allowing cooperating brokers to show the property to prospective buyers.
b. Grants BROKER exclusive "FOR SALE" sign privileges.
c. Consents that the property may be shown at any reasonable hour.
d. Agrees to refer any and all inquiries concerning the property to the BROKER.
e. Authorizes BROKER to accept and hold in an escrow account all deposits made by a purchaser until closing, or cancellation of the contract by mutual consent of all parties.
f. In the Event OWNER decides to rent the property, OWNER grants exclusive rental privileges to BROKER, as well as the exclusive "FOR RENT" sign privileges upon amount of rent, compensation and terms to be negotiated by separate agreement between the parties, if both parties are willing to do such.
4. Fair Housing. It is agreed that this property is listed in full compliance with local, state and federal housing laws against discrimination on the basis of race, color, religion, sex, national origin, handicap, age, marital status and/or familial status, or other prohibited factors.
5. Purchasers Mortgage. OWNER agrees to accept a purchase offer contingent, for a reasonable period of time, on the purchaser's ability to finance the purchase price by any of the prevailing methods of mortgage financing. Any other type of mortgage loan or financing must be approved by OWNER.
6. Key. OWNER will provide BROKER with a key. OWNER understands that by providing BROKER with a key to the property this does not in any way make the BROKER the custodian of said property or responsible therefore.
______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
SAMPLE ONLY--NOT FOR PUBLIC USE
7. Lockbox. OWNER_________ does or _________does NOT authorize the use of a lockbox.
8. Brokerage Fee: Amount, When Due and Payable. If, during the period of this agreement, or any extension thereof, a transfer, sale or exchange of the property is made, effected, or agreed upon with anyone, the OWNER agrees to pay the BROKER a commission of ____________(% of gross selling price or definitive amount). Further, this commission will be due and payable if after the expiration date of this agreement and within __________________thereafter, a purchaser contracts to buy the property who was shown the property by a licensed agent or participant in the MLS and /or made aware of the property by a participant in the MLS or the OWNER during the term of the listing, or any extension thereof, provided the OWNER has been personally introduced to or has received written notification of the prospective purchaser before or upon termination of this agreement or any extension thereof. The OWNER shall not be obligated to pay such commission if a valid listing agreement is entered into during the term of such protection period with another licensed real estate broker and said sale, lease, transfer or exchange of the property is made by such broker during the term of said protection period.
9. Compensation Offered to Cooperating Brokers.
Sub Agency is ______ or is not ______ authorized. Commission offered by BROKER to Sub Agents is________% or $________,
Buyer Agency is_____ or is not _______ authorized. Commission offered by BROKER to Buyers Agents is ________% or $________,
Broker Agency is ______ or is not _______ authorized. Commission offered by BROKER to Brokers Agents is ________% or $________,
10. Termination. OWNER understands that if OWNER terminates BROKERS's authority prior to expiration of the term of this agreement, BROKER shall retain its contractual rights to a commission and recovery of advertising expenses and any other damages incurred by reason of an early termination of this agreement.
11. Board and Multiple Listing Service Not Agents. Owner understands and agrees that the BOARD and the MLS are not the OWNER's agents and that none of the terms of this agreement shall make them the OWNER's agents.
12. Commission Escrow Act Section 294-b of the Real Property Law. At the time of closing, you may be required to deposit the broker's commission with the county clerk in the event that you do not pay the broker his or her commission as set forth herein. Your obligation to deposit the broker's commission with the county clerk may be waived by the broker.
The OWNER has read and understands the entire agreement and does hereby acknowledge receipt of a copy thereof (Owner Initial) _______. A copy will be mailed to me__________(Owner Initial.) This agreement shall be binding upon the parties hereto. Agreed and accepted by:
______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
EXPLANATION: Rule 175.24 of the Rules and Regulations under Article 12A of the Real Property Laws requires the following explanations: An "Exclusive Right to Sell" listing means that if you, the owner of the property, find a buyer for your house, or if another broker finds a buyer, you must pay the agreed commission to the present broker. An "Exclusive Agency" listing means that if you, the owner of the property, find a buyer, you will not have to pay commission to the broker. However, if another broker finds a buyer, you will owe a commission to both the selling broker and your present broker.______________________________ (BROKER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (OWNER - Initial and Date)
______________________________ (Authorized Red. - Initial and Date)
Open Listing
The open listing is a non-exclusive contract. It gives the broker permission to show potential buyers your home, and the broker will only earn a commission by bringing in a client who buys the home. Since the open listing isn't exclusive, sellers can sign these listing agreements with as many brokers as they want. The bottom line with an open listing is that no broker has any incentive to market the home at all. They won't even place the home on the local MLS service with an open listing. Further, it's up to the seller to field all phone calls and coordinate all showings etc…. Generally, the only people who use open listings are FSBO's (for sale by owner) who are willing to pay a partial commission to an agent for finding a buyer. You shouldn't expect any marketing or advertising at all with an open listing contract.
OPEN LISTING AGREEMENT SAMPLE
Also called the "one time agreement". This is an agreement whereby a FSBO agrees to let an agent show the home to an interested client and pay a commission to the agent if that showing results in a sale. The purpose being to prevent a seller from letting an agent show the property, then deal directly with the client, to avoid paying any commission.
Contact Information
John Kavaller: New York State Licensed Real Estate Broker, Realtor®
Catskill Country Real Estate
4930 State Route 52, Box 434
Jeffersonville, New York 12748
Toll free: Not Available / Phone: 845-482-2221
Cell: 845-492-0261 / Fax: 888-252-0313
E-mail: Click here / Website: CATSKILLCOUNTRYREALESTATE.COM
