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Written by Robert K. Corrieri   
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
Last Updated on Thursday, 08 April 2010 22:03
 

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