Standard listing contracts

The open listing

The exclusive right to sell or lease
The multiple listing
Sources of listing

P R E PA R E D B Y:
S R D R N U R L E S YA F I R S YA B I N T I J O H A I M I L I N G
 A written agreement, contract between a principal and an agent.
 An agreement that represent the right of an real estate agent to handle
the sale of real property and to receive a fee or commission for services
 A record of property for sale by a agent who has been authorized by the
owner to sell
 Example:
Abel employs Baker to find a buyer for his home by giving Baker a listing
contract. When prospective buyers visit Baker, they will examine the
listings in Baker’s office. If interested, a prospective buyer may wish to
visit the listing
Property End User
Listings Listings
List of List of
properties for prospective
sale purchaser

List of List of
properties for prospective
lease/rent tenant
 Owner may invite agents to their property
to test the market, to ask agents opinion on
price or to get agent’s view on the salability
of property
By asking question such as:-

 How long they have lived in the property?

 Why are they selling the property ?
 What price are they expecting?
 How urgent they want it to be sell?
 It is a MUST for an agent to view the property.
 Reason:-
 See the condition of the house
 Know the surrounding area
 Know and confirm the types of the property
 Take photograph
 Estimate the reasonable selling price
 Make recommendation
 Client’s confidence in the agent will be increased
 Know and familiarity with the product he is selling
 Owners normally tend to overestimate the value of
their property
 So don’t let seller set the price – advice on reasonable
price – agent must know more about property price –
need to do property surveys
 Support advice with comparison facts (figures and
writing report)
 If owner disagree, suggest any recommendation to the
owner
 Price reduction-can suggest if market not so good if
property cannot be sold after certain time.
 A listing contract is a contract between a real
estate agent(or his/her agent representatives
acting in the REA name) and seller, or

 To give the agent right to offer the property

for sale and to receive a fee or commission for
services
Include all the following terms:-
1. A beginning and termination date
2. The list price at which the property will be offered
for sale
3. The amount of compensation offered to the agent,
whether it is in the form of a flat fee or percentage of
the sales price
4. The terms and conditions under which the agent
fee shall be paid by the seller
5. Authorizes the agent to co-operate with other agents as
sub-agents or buyer’s agents and details the compensation
to be offered to those agents in the event they procure a
buyer.
6. Authorizes the agent to reveal or not to reveal the existence
of offers previously received.
7. In addition, terms maybe include is; authorization to the
agent to post a sign, to advertise the property, and to put a
lockbox on the door, as well seller’s obligations to advise the
agent on the condition of the property, and agent’s
obligations to advise the seller about regulations and laws
which may affect the sale.
 Always keep in touch with the client
 Update the client on their property:-
 Market Changes
 Interest Rate
 Comment by people who have visited the
property
 Competing properties that have entered the
market or have been sold
Exclusive Agency Listing

General or Open Listing

Multiple Listing

Net Listing
- The seller must pay the estate agent a commission if, by the
expiration date in the listing contract, the real estate is sold,
regardless of whether the buyer is obtained through the agency or
not.
- Even if the seller finds the buyer him/herself, a commission is still
owed to the estate agent.
- Furthermore, the seller cannot list the property with any other agent
until the listing expires with the property unsold.
- A seller can enter into an agreement to sell his/her
property with more than one estate agents in open
listings.
- The seller must pay a commission only to the
estate agent which brings the buyer for the real
estate.
- Typically, if the seller finds the buyer him/herself,
the seller does not have to pay a commission.
 Take place when an agent with an exclusive
listing provides a number of members of real
estate association with information about the
property and shares the commission with the
agent who is able to find a buyer
An arrangement whereby the seller establish
a minimum price that will be taken for the
property and agent’s commission is the
amount for which it sells above such
minimum
See you in the next video