Listing Agreements Aren’t all the Same

If you are selling your home, and plan to list it with a real estate agency, what type of listing contract will you sign?

There are three primary types of listing agreements and each one offers a different level of service, rights, and responsibilities for both the real estate agent and the home seller. Exclusive Right to Sell Listing Agreement

The Exclusive Right to Sell is the most commonly used listing contract. As its name implies, it gives the agency the exclusive right to sell your property. You pay a commission to the agency at closing no matter who buys the property, even if you find the buyer yourself.

If an agency other than the listing agency sells thehome, the listing agency typically splits its total commission with the second agency.

The Exclusive Agency listing contract also gives a specific agency the right to market and sell the property, but with one big difference­-the seller retains the right to sell the property without paying a commission if he sells it to a buyer who was not introduced to the property by the agency.

The Listing agency shares its commission with another agency if the second agency brings a buyer.

In an open listing, no single agency has an exclusive on selling the property and the owner can sell it himself without paying a commission to anyone. A seller can sign an Open Listing with multiple agencies.

If the seller does pay a commission, it’s to the selling agency only. No commissions would be shared in an Open Listing Scenario.