Definition
A listing in the context of real estate is a written engagement contract between a principal (usually the property owner) and an agent (often a broker). This contract authorizes the agent to perform specified services, typically involving the marketing and sale of the principal’s property. The term can also refer to the properties themselves that are recorded for sale by a broker who has been authorized by the owner to sell the property.
Examples
Residential Listing
A homeowner enters into a listing agreement with a real estate broker to sell their house. The broker lists the house on various platforms, markets it to potential buyers, and negotiates the sale on behalf of the homeowner.
Commercial Listing
A business owner contracts with a commercial real estate broker to list their office building for sale. The broker networks with potential buyers, negotiates sale terms, and facilitates the sale process.
Exclusive Right to Sell Listing
In this agreement, the property owner grants one broker the exclusive rights to earn a commission if the property sells within the specified period, regardless of who finds the buyer.
Open Listing
This is a non-exclusive agreement allowing multiple brokers to list the property, with only the broker who successfully brings in a buyer earning a commission.
Frequently Asked Questions (FAQs)
What is a listing agreement?
A listing agreement is a legal contract between a property owner and a real estate broker authorizing the broker to assist in selling or leasing the property.
How long does a typical listing agreement last?
The duration varies but typically ranges from three to six months. It can be longer or shorter depending on the agreement between the principal and the agent.
Can a listing agreement be terminated early?
Yes, but the terms and conditions for early termination should be specified in the contract. Often, there may be penalties or fees for early termination.
What is the difference between an exclusive agency listing and an exclusive right to sell listing?
- Exclusive Agency Listing: The owner retains the right to sell the property independently without paying a commission to the broker.
- Exclusive Right to Sell Listing: The broker earns a commission regardless of who sells the property during the listing period.
What is a multiple listing service (MLS)?
An MLS is a database managed by real estate professionals that provides comprehensive information about properties for sale, facilitating cooperation among brokers.
Related Terms
- Exclusive Agency Listing: A type of listing where the owner reserves the right to sell the property independently but agrees to work exclusively with one broker.
- Exclusive Right to Sell Listing: An agreement where one broker is granted the exclusive right to earn a commission if the property sells, regardless of who finds the buyer.
- Multiple Listing Service (MLS): A cooperative system allowing brokers to share property listings.
- Open Listing: A non-exclusive listing giving multiple brokers the right to sell the property, with only the one who successfully brings a buyer earning a commission.
Online References
Suggested Books for Further Studies
- “The Language of Real Estate” by John W. Reilly
- “Your First Year in Real Estate” by Dirk Zeller
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “Modern Real Estate Practice” by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle
Fundamentals of Listing: Real Estate Basics Quiz
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