If you want to sell your home with a real estate agent, you absolutely must sign a list contract, according to Lenchek. If you list your home as “For-Sale-by-Owner” (FSBO), you don`t have to work with a real estate agent and therefore you don`t need to sign a list contract. Frequent breaches of contract are the task when the stockbroker does little to try to sell the property, or the seller does not go through the sale, if a buyer is found who is willing to pay the asking price. Listing contracts may also have a broker safeguard clause that entitles the broker to a commission if the property is sold to a buyer introduced by the broker within a specified period after the expiry of the listing agreement. The period of implementation of broker protection clauses is often the same period as the listing agreement. The contract is a legally binding agreement that gives the real estate broker or broker the right to sell the house. There are different types of listing agreements, but three of them are the most used. Although contractual terms may vary, the payment of a commission (or commission) to brokerage is generally subordinated: with an exclusive agency list, the seller employs a broker who acts as the owner`s exclusive agent. The broker only collects a commission if he or she is the cause of the sale. In addition, the seller reserves the right to sell the property independently and without commitment. While some homeowners sign the list contract at the first meeting, others may wait weeks or months before they are ready to sell their home.

Anyway, a list contract will be signed as soon as you are ready for your realtor to start marketing your home. An offer of options gives the broker the right, but not the obligation to purchase the property within a specified period of time over which the option expires. As this creates a conflict of interest, such as a net list, the broker must obtain the seller`s written consent for the option and disclose its profits to the seller.