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Understanding a Listing Agreement

We are here to help you understand the Selling process. Selling a home for the first time? As you’re choosing a listing agent, you’ll want to do some due diligence and make sure you understand exactly what’s included in your real estate agent agreement.

Because it’s a legal document, listing agreements can be complicated to decipher, especially since you may see it only a few times over a lifetime. It helps to know the most common elements in a listing agreement so you recognize if what you’re signing is standard or if it’s missing seller protections or has excessive agent benefits.

What is a listing agreement?

A listing agent agreement, also known as a listing agent contract, is a legally binding document between a seller and the real estate agent representing them in the sale of their home. There are several different categories of standard listing agreements, but any agreement can be modified to fit a specific situation.

Most agents who are part of a real estate agent organization or brokerage will use the standard listing agreement provided for them for each type of real estate contract, including:

  • Exclusive right to sell
  • Exclusive agency
  • Open listing agreement
  • Net listing agreement

Information from Zillow.

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