The listing agreement is a contract between the seller and a Brokerage that outlines the terms by which a home is to be marketed. It is a binding contract but, it is important to remember that signing a listing agreement does not compel you to sell your home, nor can it force you to sell at a particular price.
The listing agreement is intended to provide information to potential buyers, provide a suggested list price, and should the home sell, it states who and how much will be paid from the proceeds of the sale.
There are clauses in the agreement that establish the following:
The list price of the home
Length of time property is to be listed
Who will market the property
Authorization to place a sign on the property
Authorization to install a lockbox on the property for keyed access
Permission to advertise the property
Permission to place the property on the MLS System
Privacy Act and disclosure issues
What to do in situations of multiple offers
Commission rates
There is an attached addendum to the agreement stating the following:
Lot size
Area home is located
Property taxes
House square footage – above and below foundation separately
Size of each room
Number of bathrooms
Exterior description
Special features inside and outside the home i.e. flooring, Cabinets, etc.
Topography
Various aspects that buyers may want i.e. garage, pool, etc.
Items that are included in the sale price that are not attached to the home i.e. fridge, stove, etc.
Items that are to be excluded from the purchase price that may be attached to the home i.e. sentimental mirrors, window treatments, etc.
Heating, electrical, well, septic, details as required
A written description of your property to be used in advertising
Other info as required
When your agent enters this information on the MLS, you should review it for accuracy. If there is anything you wish to add or change, please let your agent know. It is very easy to do.
There are other minor issues contained in the listing agreement that your agent will discuss with you when you list you home.
