{"id":7234,"date":"2016-09-20T01:00:26","date_gmt":"2016-09-20T05:00:26","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=7234"},"modified":"2018-10-11T13:41:24","modified_gmt":"2018-10-11T17:41:24","slug":"understanding-your-listing-agreement","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/understanding-your-listing-agreement\/","title":{"rendered":"Understanding Your Listing Agreement"},"content":{"rendered":"

If you bought or sold a home recently, chances are you signed a listing agreement – but did you truly understand what you were signing? While a common component of real estate transactions, listing agreements can have language that can be overlooked. Here\u2019s what you should know about them \u2013 before signing on the dotted line.<\/p>\n

What is a Listing Agreement?<\/h2>\n

A listing agreement is a contract between a buyer, renter, or seller and an agent. It basically means that agent has sole exclusivity to represent you for a set length of time while you seek buyers for your home for sale. It comes with various protections and limitations, some of which are not understood by buyers and sellers.<\/p>\n

Commission Applies, Even in a Private Sale<\/h2>\n

One of those limitations is for private sales. Let\u2019s say you\u2019re selling your home<\/a> and a family member or close friend is interested in purchasing it. You might think you can sell to them privately and avoid the real estate commission – but if you\u2019ve signed a listing agreement, you\u2019re still on the hook.<\/p>\n

What a listing agreement specifies is that you\u2019re supposed to refer anyone (even if you find the buyer on your own) to your agent. Even if you arrange a private sale, you most likely will still owe the commission to your agent due to something called the holdover clause (which we\u2019ll discuss later).<\/p>\n

The Benefits of Having an Exclusive Agent<\/h2>\n

A lot of sellers assume they can sell their home on their own without the assistance of an agent. While that may be true, there are more benefits to working with an agent<\/a> than them simply finding you interested buyers. Your agent will also negotiate on your behalf on everything from the price to conditions of your sale and your closing date. Most importantly, your agent will handle the complicated paperwork to ensure the deal goes through without a hitch. Selling a home is most likely the single largest transaction of your lifetime \u2013 your agent can ensure it goes smoothly.<\/p>\n

Common Listing Agreement Misconceptions<\/h2>\n

Perhaps the biggest point of confusion among buyers and sellers is that a listing agreement is written in stone and no changes can be made. This is false.<\/p>\n

\u201cYou can and should make any changes to the agreement that you do not agree with or do not understand prior to signing. Always make sure to take the time to go over the paperwork in detail and ask your agent for clarification,\u201d says Brittany Kostov, a real estate sales representative at Zoocasa<\/a>.<\/p>\n

\u201cFor example, commissions are not set or fixed – these are fully negotiable and you should understand what services accompany the fees you are paying.\u201d<\/p>\n

Negotiate the Holdover Clause<\/h2>\n

The holdover clause is a standard inclusion in the listing paperwork. It means that within a specifically stated amount of time after the listing agreement has expired, if you sell to a buyer that was introduced to your property during the term of your agreement, you are still responsible for paying the commission to your agent and brokerage.<\/p>\n

\u201cIt does not matter how the buyer was introduced to your home, whether they came through an open house or if you know them personally – the holdover clause still applies,\u201d explains Kostov. \u201cThe length of the holdover period is negotiable and should be discussed at the time of signing the agreement so that you and your agent are on the same page.\u201d<\/p>\n

\u00a0Always Ask Before You Sign<\/h2>\n

As with any legal document, it\u2019s important to make sure you understand what you\u2019re signing. Buying and selling real estate is a busy time; it\u2019s easy to just quickly sign on the dotted line without paying much attention, but by doing that you\u2019re agreeing to whatever is in the listing agreement (which is a legally binding document). You could end up signing a listing agreement for a year without even realizing it. While this may work out, what if you and your agent aren\u2019t compatible? You could end up being stuck together unless your agent is will to end the listing agreement early.<\/p>\n

Remember, everything is negotiable. If you don\u2019t like something you see, don\u2019t be afraid to speak up and ask for an amendment. The worst thing your agent can say is no, at which point you can decide whether you want to keep working together or go your separate ways.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you bought or sold a home recently, chances are you signed a listing agreement – but did you truly understand what you were signing? While a common component of real estate transactions, listing agreements can have language that can be overlooked. Here\u2019s what you should know about them \u2013 before signing on the dotted […]<\/p>\n","protected":false},"author":31,"featured_media":7236,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[113],"tags":[1001,998,1000,579,999],"class_list":["post-7234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-your-home","tag-home-sale-contract","tag-listing-agreement","tag-realtor","tag-selling-your-home-2","tag-zoocasa-real-estate-agent"],"yoast_head":"\nUnderstanding Your Listing Agreement | Zoocasa Blog<\/title>\n<meta name=\"description\" content=\"Signing a listing agreement is common when working with a real estate agent to buy or sell a home - but do you understand what's on this contract?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/understanding-your-listing-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Your Listing Agreement | Zoocasa Blog\" \/>\n<meta property=\"og:description\" content=\"Signing a listing agreement is common when working with a real estate agent to buy or sell a home - 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