|The different types of Listing Agreements are:
1. Open Listing Agreement
An open listing can be given to any number of real estate brokers without liability to pay a real estate commission except to the broker/agent who secures a buyer first who is willing and able to purchase the property. Upon sale of the property all other listing agreements terminate.
2. Exclusive Agency Listing Agreement
An Exclusive Agency Listing agreement differs from an Open Listing Agreement in that the home seller retains the right to sell the property themselves and not pay any commission. Commission is however still payable if the broker secures a buyer.
This is not a popular or widely used listing agreement and most brokers feel that there is too much risk involved to spend marketing dollars and effort in trying to sell the property.
3. Exclusive Right-to-Sell Agreement
An Exclusive Right-to-Sell is a listing agreement where a seller employs one specific real estate broker and agrees to pay that broker a commission if a buyer is secured under the terms of the contract. The commission earned includes both the listing and the buyer’s commission.
No other broker/agent may sell offer the property for sale, unless the property is placed on the MLS (multiple listing service) and is made available to other brokers through a sub agency agreement. In such an instance the listing and buyer commission is shared between the listing broker and the broker securing the buyer.
Under the terms of an Exclusive Right-to-Sell listing the broker is still entitled to the commission even if the home owner sells the property themselves. This is the most popular method of listing a property for sale and many brokers will not take a listing or invest marketing dollars and time without an Exclusive Right-to-Sell agreement.