Selling a home is a process that often involves the help of a real estate agent. As a seller, you can work with a broker to market your property and find a suitable buyer. The listing agreement will spell the relationship between you and the broker. Before entering into an agreement with a broker, you must understand the terms of the listing agreement, including your reciprocal rights and obligations arising from the contract. At Pulgini and Norton, we represent our clients when buying and selling real estate. A Boston real estate seller can guide homeowners in the process of selling a home. If you would like to question the help of a broker, contact us to discuss the listing agreement and see how we can help you. If you decide to hire a broker, he or she will require you to sign a list agreement which is the contract between you and the broker. It creates an agency relationship. The real estate agent, as an agent, agrees to help you find a buyer for the property for a fee or commission. By creating an agency relationship, the broker must act in your best interest.
He or she owes you his or her loyalty, responsibility and confidentiality, and he or she must be interested in negotiating the best price for the property. The terms traditionally include the amount of commission (which traditionally represents 5 to 6% of the proceeds of the sale), the exclusive right to sell the house, the duration of the agreement, a safeguard clause to protect an agent after the expiry date, statements on certain facts such as the right to sell and whether someone else has a stake in the property , agent obligations and permits and sometimes a dispute resolution clause. You will also want to set out your expectations regarding the marketing of the property. For example, you may want the real estate agent to accept a number of open houses during the listing period or to advertise in certain media such as newspapers or the Internet. A listing agreement allows a real estate agent to sell land and obtain a commission when the sale is completed. The listing agreement may or may not be exclusive. If it is exclusive, the real estate agent is entitled to a commission, no matter who sells the house. If it is not exclusive, the real estate agent will only receive a commission if he sells the house.
At Pulgini and Norton, our real estate lawyers can help Boston homeowners make decisions about exclusive, non-exclusive listing agreements and other real estate transaction issues. Non-exclusive listing agreements also allow a seller to list a home with many agents, and they ask for payment of a commission only to the agent who actually sells the house. The downside of non-exclusive listing agreements is that if agents are not guaranteed, they should not try to sell the property as aggressively (or in general) as they would if they had an exclusive list. Brokers generally require sellers to sign an exclusive right to sell the language of the list. An exclusive right to sell gives the broker the right to earn a commission if the property is sold by someone. In other words, you have to pay a commission to the broker, even if you, the seller, find the buyer through your own efforts. You can also enter into a non-exclusive listing agreement. With a non-exclusive, a seller can use his own efforts to sell the property. The seller can also employ other brokers to market and sell the property.
A broker who agrees with a non-exclusive will generally want a higher commission if he finds a buyer. Non-exclusive listing agreements can benefit sellers because they do not have to pay a commission to an agent if they do the marketing to get the house sold. For example, if you find a buyer for your home on your own, you don`t have to pay commission to your non-exclusive listing agent at the time of the sale. In an exclusive listing agreement, the listing agent holds most of the control of the real estate transaction.