When engaging a real estate to sell your property, they will usually have you sign a listing agreement. The listing agreement will define the relationship between you and your real estate agent/broker. There are four types of listing agreements:
- Exclusive Right of Sale Listing Agreement – The real estate agent is entitled to commission no matter who finds the buyer. This type of listing agreement tends to be the most common.
- Exclusive Agency Listing Agreement – The real estate agent is entitled to commission if he or she finds the buyer. However, if the seller finds the buyer, then the real estate agent is not entitled to commission.
- Open Listing Agreement – The seller can work with and sign as many non-exclusive listing agreements as the seller wants. Thus, the seller can use more than one real estate agent to sell the seller’s property. The only real estate agent entitled to a commission is the one that finds the buyer. This sort of listing agreement is used most often if the seller is trying to sell the seller’s home by owner, but is still willing to work with real estate agents at the same time.
- Net Listing Agreement – The seller enters a listing agreement with a real estate agent that authorizes the agent to list the property at a price set by the seller. The real estate agent keeps any amount that is over the seller’s set price.
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