Seller's Representation
Antonio Spiriti PA
What is a listing Agreement?
If you are going to be working with a real estate agent and are ready to get the ball rolling on the sale of your home, a listing agreement is the first step that establishes the formal relationship between seller and agent.
The listing agreement is a contract that lays out specific, agreed upon terms, giving the real estate agent permission to market a home to buyers. No money should be required up front to sign a listing agreement, as agents are paid when a home sale is successfully concluded.
A listing agreement protects the seller, so that they aren’t tied to an agent that isn’t delivering on their service like they should. It also protects the real estate agent so that they know what their job is and are guaranteed a commission if they find a buyer and execute a successful sale.
Exclusive Right-To-Sell Agreement
This is the most common type of listing agreement. An exclusive right-to-sell listing agreement puts the entire transaction in the hands of the real estate agent, meaning they are the only ones that will find a buyer and handle all the other details.
An exclusive right-to-sell listing agreement guarantees the listing real estate agent a commission upon successfully acquiring a buyer for the property. They don’t have to worry about another agent receiving a commission instead of them, and if efforts from you or another agent lead to a buyer, the listing agent still receives the commission.
With this type of listing agreement, the broker acts as the agent and any agent in the agency may sell the home and collect the commission. But in an exclusive broker listing, the seller still reserves the right to sell the home on their own if they choose, and “if the seller sells [solely through their own effort], they are not obligated to pay [the real estate agent].
In an open listing, the seller pays commission to the agent only if the house sells through the efforts of that agent.
Basically, the real estate agent may agree to an open listing agreement if they are in a position where they think they will get the transaction completed quickly and they aren’t having to invest much time and effort.
Exclusive agency listing and open listing agreements are generally less favored by agents, making them less common than exclusive right-to-sell listing agreements.
Exclusive Right of Sale Listing Agreement – single agency (ERS-17sa)
This form is a listing agreement in which the seller grants to the listing broker the sole right to sell the property and establishes the broker is acting as a single agent for the seller.
Exclusive Brokerage Listing Agreement (EBLA-10)
This is a listing agreement in which the seller authorizes the listing broker to sell the property and to offer cooperation to other agents but reserves the right to sell the property herself/himself.
Commission Agreement (CA-7)
This form may be used with a seller/landlord who does not list his/her property but agrees to pay commission to the named broker if the buyer/tenant named on the agreement purchases or leases the property. It contains the commercial lien act disclosure in the event the agreement is used for commercial property.
