Once you have interviewed and selected a listing broker for your property, you will be provided with a listing contract. Before signing this document, it is important to understand what it is comprised of. The Bennington listing contract provisions in this blog will better prepare you for this.
Commission is usually specified as a percentage of the sales price. It is a violation of anti-trust laws for brokers to state that a rate is standard in the market. Every brokerage determines its own rates and, similar to everything else in real estate, it may change. It is important to assess the expertise and value provided by individual real estate brokers when comparing their fees. Merely selecting one with the best rate may not actually benefit you in the end.
Listing agents traditionally split a certain percentage of the fee with buyer agents. The amount shared is entered in the MLS system. Higher rates can sometimes influence buyer agents to promote your home and, conversely, lower percentages may sometimes discourage other agents. This is especially true when listing volume is high. If the amount is not mentioned, you may ask about it.
Finally, the contract also notes when the compensation are actually earned. This is very important. Your contractual responsibility to your broker is different from that to any other parties. Therefore, it is not strictly based on a closing.
You must enable your agent to complete specific tasks. The most obvious one is to submit the details of your property into the local MLS (multiple listing service). This service shares the information to all real estate brokers and to a list of authorized websites. By expanding the exposure of your listing, you will increase the chances of selling and for a better value. Adding signs, attaching a lock box, and scheduling open houses are other services that you may be asked to sign off on in the listing contract.
Real estate brokers are not solely salespeople. They are in fact agents in the legal definition and have special responsibilities under real estate law. These are called fiduciary duties and include disclosure, care, lawful obedience, accounting of funds, loyalty, confidentiality, and diligence. Basically, your real estate broker must work for you and protect your best interests. There may be instances where a real estate professional also represents an individual attempting to purchase your home. The paperwork will provide information on how this shall be addressed, such as advanced disclosures, and what services will be given to each party. Make sure that you completely understand the potential scenarios and are comfortable with them.
Bennington Listing Contract Provisions
The Bennington listing contract provisions above are only the most common components of listing contracts but may not address all language in your specific contract. As with any kind of contract, read through the complete document carefully, ask questions about things that are not clear, and consult with an attorney if you desire legal advice.