What is a Listing Agreement in Real Estate?

What is a Listing Agreement in Real Estate?
by John Carlucci - June 14, 2021

In this blog post, we are going to discuss what is a listing agreement in real estate. Well, a listing agreement is a contract under which the property owner agrees to allow the agent to find buyers for your property on terms that are set by you. In return, the broker gets paid commission based on what was agreed upon in the document.

Key Points Of Listing Agreement

  • A listing agreement can be a contract between an owner and a broker that authorizes the broker to represent them when selling their property.
  • The tone of voice should be professional.
  • The 3 types of real estate listing agreements include exclusive right-to-sell listing, exclusive agency listing, and open listing.
  • The listing agreement is not a real estate contract but an employment one: the broker represents the seller, and no property transfers between them.

How a Listing Agreement In Real Estate Works

The listing agreement makes the broker able to represent a seller and their property for sale. The difference with this type of contract is that it does not involve any transfer of ownership from one party/person to another. They have been hired by someone else but are still under no obligation whatsoever if an offer were made on the home before them. In most cases, these agreements must be written down because there's just too much going on in such a complex situation!

Listing agreements are designed to be a straightforward and easy process for the buyer. However, there is quite a bit of information that must first be understood by both parties- even property descriptions can vary from one house to another.

Well, a listing agreement is a formal contract that should be used to protect both parties in case of any miscommunication or misunderstanding during negotiations.

I hope this article was helpful n understand what is listing agreement in real estate. If you have any questions feel free to ask them in the comment section below.


What do you mean by listing agreement?

A listing agreement in real estate is an agreement between a broker and seller that gives the right to offer property for sale.

Why is a listing agreement important?

The listing agreement is an important document in the home-selling process. It outlines what each party can and cannot do as well as their responsibilities for selling a house to potential buyers.

What are the three most common types of listings?

Three types of listing that you should know about are open listings, exclusive rights to sell a property or object, and an agency-only agreement.

What is the process to make changes to a listing agreement contract?

A listing agreement can be modified if all parties agree in writing. A listing agreement may also change by the mutual verbal consent of all parties, but this is not as common an occurrence due to the delicate nature of negotiations and contract relations between buyer/seller.

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