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A written agency agreement between a property owner and a licensed real estate broker, authorizing the broker to market the property,solicit offers for its purchase or lease,and engage in negotiations pursuant to the owner's instructions.It imposes fiduciary responsibilities on the broker, who owes duties of care,loyalty,and confidence to the property owner.
Important concepts include
• Most state licensing laws require listing agreements to be in writing.
• The most common type of listing agreement is an exclusive right to sell, under which the broker receives a commission even if the owner sells the property to a relative.
• Some brokers offer exclusive right to list contracts, giving the owner the right to sell to anyone without paying a commission, but no other real estate broker may earn a commission directly from the owner, only as a cooperating broker paid by the listing broker.
• Most states require a definite termination date in the listing agreement, which may be renewed by mutual agreement of the parties.
• Most states prohibit net listings, in which the owner agrees to pay the broker all sums received over a certain minimum amount wanted by the owner.
• Some listing agreements have a clause entitling the broker to the agreed-upon compensa- tion if the property sells within a certain time period—usually 6 months—after listing expiration, but to someone introduced to the property by the broker during the listing period.