What is a listing agreement?

Whether you’re buying or selling a property, you may be beginning to realize there is a LOT of paperwork involved in real estate! In order to keep you and your realtor safe and in an understanding with each other, each of the many forms you fill out will set the stage for your relationship.

The Listing Agreement Form, Form 200, is a contract between a seller and a real estate company. This gives the company permission to act on the seller’s behalf by listing the property. This form secures commission for the realtor and ensures the code of ethics for the realtor. 

The first section of the form will collect information on the seller and brokerage. 

Then, there are a series of definitions of aspects of this agreement. We are going to break down each subsection of this agreement so that you understand what it is asking of you, the seller, and of your realtor!: 

• Definitions and interpretations

  • This simply defines the terms in the agreement. 

• Commission

  • This section takes note of the fee that will be paid to your agent, their brokerage, and any other details about the commission. 

• Representation

  • This section confirms that the real estate agent and their company have explained the agency relationships within this agreement and transaction. 

• Finders Fee

  • A short clause that lets sellers know their agent/brokerage may receive compensation from referrals. 

• Referral of enquiries

  • The seller should let the company know of any enquiries about their property. This is to ensure the realtor and company you are working with are aware and can negotiate appropriately!

• Marketing

  • You agree to the brokerage marketing your property, including signage on your property.

• Warranty

  • Confirm that you have the authority to sign this listing. This is important to identify that the property is yours, and you are legally allowed to sign to sell it.

• Indemnification and Insurance

  • You agree not to hold the brokerage responsible for any loss or damage to your property unless it is caused by the brokerage’s gross negligence act or a willful act. You must also confirm you have insurance if injury or property damage occurs. This is especially important for open houses and showings that happen in your house, while you are not home!

• Family Law Act

  • You confirm that you don’t need permission from a spouse to sell your home or that you have provided permission if it has been given to you.

• Verification of Information

  • You agree that your realtor can obtain information about you from the government, mortgage companies, and others. 

• Use and Distribution of Information

  • You agree that the brokerage can use personal information to market your property. 

• Successors and Assigns

  • Confirm that heirs, trustees, or other legal parties also abide by this agreement if they intend to act on your behalf. 

• Conflict or Discrepancy

  • If something is added to this agreement, then the added part overrides whatever is currently in it.

• Electronic Communication

  • You agree that this agreement can be sent and signed virtually and that it will still be binding.

• Schedules

  • Anything added, like a form, to this contract, go here.