A Listing Agreement is a contract between you and your agent’s brokerage company. It provides a framework for subsequent forms and negotiations. It’s important the agreement accurately reflects your property details and clearly spells out the rights and obligations of all parties.
Generally, in the agreement you appoint the brokerage company as your agent and give its representatives the authority to find a purchaser for your home. The Listing Agreement will outline:
- The duration of the agreement
- Your REALTOR’s® compensation
- The listing price
- Accurate description of the property
- Financial conditions of the property, including the mortgage balance, mortgage monthly payments and the mortgage due date
- Information about annual property taxes
- Any easements, rights of way, liens or charges against the property.
Disclosure
Ask your listing REALTOR® about disclosure, which is a seller’s obligation to disclose facts about properties for sale. The buyers will need to know material facts about the property; that is, anything that could materially affect the sale price or influence a buyer’s decision to buy it. A major cause of post-sale disputes and lawsuits relate to defects and disclosure, but most disputes can be avoided if proper disclosures are made. Intentionally withholding information about a property when selling it can have serious legal consequences.