About Listing Agreements
A listing agreement is a contract between a real estate broker and a seller that gives the broker the right to offer the property for sale.
The following are the most common types of listing agreements:
- Exclusive Right-to-Sell Listing
Used most frequently, an exclusive right-to-sell listing gives one broker the exclusive right to represent the owner and earn a commission if the property is sold prior to the expiration date of the listing agreement. In exchange for the exclusivity, the broker will invest the time and resources to market the home to consumers and agencies who work with buyers. The owner would also be responsible for paying the selling broker fees if a broker delivers the buyer for the property.
- Exclusive Agency Listing
An exclusive agency listing is when the owner agrees to list the property with a broker and pay the broker a commission if the property is sold to a buyer obtained by that broker. But with this type of listing, the owner can still sell the property himself/ herself without having to pay commission fees. This makes it unpopular as the broker may be reluctant to invest in actively marketing the property due to the uncertainty in earning back the expense through commission fees.
- Open Listing
Under this arrangement, the owner sells the home by himself/ herself but is also willing to let brokers bring buyers to see your property. If a broker's client purchases the property, the owner pays a commission fee to that broker. As with the Exclusive Agency Listing, the broker may be reluctant to market the property and will only consider showing it to their client if it meets their buying criteria.
The information provide above is personal commentary and should not be taken as fact. The Texas Real Estate Commission who licenses Texas real estate agents is very clear about informing clients that even as Texas Realtors, we are licensed as real estate salesmen and are: not Texas licensed attorneys giving any legal advice or binding legal information; not Texas licensed home inspectors, not appraisers, not surveyors, not loan officers, bankers or underwriters and are not title company representatives.