A seller’s agent is also known as a listing agent. The seller’s agent represents the interests of the homeowner(s) in the selling process. A seller’s agreement helps forge a dedicated partnership between the seller and the agent. Pearce REALTORS® receive superior training, which means that you get superior representation throughout the process of buying your home. Our REALTORS® know the business and they pass that education on to you, helping you make informed decisions.
Here are some Frequently Asked Questions about sellers contracts, or listing agreements:
What is a Listing Agreement?
A listing agreement is a legal contract that gives your chosen real estate agent the right to sell your home on your behalf. While there are a few types of listing agreements, the most common one is an Exclusive Right to Sell Listing Agreement, which gives your agent, or brokerage with which your agent is affiliated, exclusive rights to:
- list ylist your home on MLS and other listing services;
- market your home;
- find buyers for your home; and
- receive an stated commission from the sale of your home.
How does a Listing Agreement benefit the seller/homeowner?
A contract ensures that your home is getting professionally represented and getting full exposure to all potential buyers. An Exclusive Right to Sell contract protects both the seller’s interests and the agent’s time and efforts. Once the agent enters into a contract with the seller, the agent must offer them total confidentiality and representation. The seller becomes the client, and the agent can now:
- advise the seller on a listing price;
- list the home for sale;
- market the home with advertisements, mailings, photography, web listings, etc.;
- show the home to prospective buyers and agents;
- negotiate offers in the best interest of the seller.
What obligations does a real estate agent have to a seller?
Connecticut real estate agents are licensed to represent a person for the leasing of or sale of a property. Once the agreement is signed, the seller becomes the client. Agent responsibility to the client is defined by state law, the REALTOR® Code of Ethics and general principles of agency law. The relationship created between the agent and the client is a fiduciary relationship, based on trust. The agent owes the following duties to the client:
- confidentiality
- loyalty
- disclosure
- diligence
- obedience
- accounting
- reasonable Care
Do I have to sign a Listing Agreement?
Yes; if you want your home to be sold by a licensed real estate agent, you will need to sign a contract to give your REALTOR® the right to sell your home. Signing a listing agreement also allows your home to appear on the Multiple Listing Service (MLS).
Who Pays the Commission?
The commission comes out of the proceeds of the sale or lease of your property, so technically the seller pays the commission. In almost all cases, the commission is still paid to the seller's agent, who then pays a Buyer Broker Commission to the broker that represents the buyer.
