The Listing Agreement is a contract between the the seller (you) and the real estate Broker (Samson Realty). We use a standard form provided by the Northern Virginia Association of Relators. Here is a brief summary of what the listing agreement does:
- It gives the Broker the exclusive right to “list” the property (represent you in it’s marketing and sale) for a specific period of time. I usually ask for at least 90 days, which is extendable, to ensure that the sale is completed.
- It describes the property in legal terms and lists what is intended to be included in the sale (appliances, etc.) and what is not. It includes a variety of details as to utilities, owners associations, liens such as existing mortgages, etc.
- It sets the initial asking price, as determined by you.
- It describes the Broker’s duties and responsibilities, which include
- promoting your interests and providing you with real estate services consistent with reasonable standards of practice and competence;
- using reasonable efforts and diligence to seek buyers at the price and terms you ask, negotiating on your behalf, and helping the sale to close;
- marketing the property until you have accepted an offer;
- listing the property in the Multiple Listing Service, offering compensation to other Brokers to assist in the sale (as you decide);
- installing “For Sale” signs on the property as permitted;
- showing the property to prospective buyers and other real estate licensees, inspectors, appraisers and other necessary parties to facilitate the sale, including the installation of an appropriate keybox;
- presenting all written offers and counteroffers to you in a timely manner, unless otherwise instructed by you; and
- accounting in a timely manner for all money and property received in trust in which you may have an interest;
- maintaining the confidentiality of all personal and financial information obtained from you;
- not disclosing the existence or terms of offers on the property unless authorized by you; and
- complying with Fair Housing and other applicable laws.
- It describes the Broker’s compensation, including compensation to be offered to cooperating brokers and additional fees, if any.
- It discusses the various kinds of real estate representation under Virginia law, and includes a potpourri of miscellaneous legal advice and suggestions.
Obviously you will want to go over the actual agreement carefully, as you should any legal document you are signing, but it helps to at least start with an understanding of what it is intended to do. I will be happy to explain any provisions that may not be clear