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Written by Robert K. Corrieri
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Tuesday, 28 July 2009 20:20 |
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Our Listing Agreements
What is a Listing Agreement?
(Click here for Wikipedia’s definition)
Listing Agreement (sometimes referred to as Brokerage Agreement) is a binding legal contract between a home seller and a state licensed, real estate brokerage company (Listing Broker), which creates an “agency relationship” between the two (2) parties.
Agency relationship refers to the legal concept whereas a principal (home seller) engages an agent (Listing Broker) to act in his/her best interest while performing services on his/her behalf.
Once a Listing Agreement is executed, a Listing Broker owes certain “fiduciary duties” to the home seller that they represent. Fiduciary duties are obligations to act in the client's best interests. Those duties include:
- Exercising reasonable skill and care in representing the client and carrying out the responsibilities of the agency relationship
- Following any lawful instructions of the client
- Using his/her best efforts in performing duties
- Remaining loyal to the client's best interests
- Disclosing all material or important facts to the client
- Accounting for the client's money and property
- Keeping information confidential as required by state law or regulations.
Listing Agreement generally includes the following:
- Length of the listing period
- List price
- Terms of sale
- The amount of the commission
- Any exceptions to the commission
As well as, the specific responsibilities of the broker, such as:
- Showing the house
- Conducting open houses
- Marketing the house
- Negotiating with the buyer
- Preparing the contract of sale
- Representing you at the closing
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Last Updated on Thursday, 08 April 2010 22:03 |