This is not a surprise. There is a lot of money, time and stakeholders that are related to the purchase and sale of real estate. The development of a formal contract is a simple way for all parties involved to protect their assets and have clear expectations of other parties involved. An important contract that must be concluded at an early stage in the real estate process is a listing contract. An exclusive agency listing agreement gives a broker the right to market and sell a property for a certain period of time, while the owner retains the right to find a buyer and sell the property without having to pay commission to the broker. The seller must pay a commission only if the house is sold by the broker or by an agent or a licensed sub-agent of the real estate agent. This type of list is not very common in residential stores, because it increases the chances of a dispute between the broker and the seller about who was actually the cause of the sale supply. There are four types of popular offers: open offers, exclusive right to sell offers, lists of exclusive agencies and net lists. « The listing agreement is a legal contract between a homeowner who wants to sell his home for the best dollar and a good solid real estate company that also wants to sell their home for the best dollar, » says Armand Lenchek, who has sold hundreds of homes and ranks in the top 2% of selling agents in Durham, North Carolina. This is where the list agreement comes in – to make a written agreement between you and your agent, start the sales process and lay the groundwork for the next few months of your sale. A list agreement should not cost anything in advance. On the contrary, it determines the compensation of the real estate agent after the closure. « List agreements have a clause that says if something happens and you separate from the company, the sellers are responsible for the listing agent`s expenses, » Lenchek adds.
« But I never received and I will never get that clause. » The list agreement, especially the exclusive list agreement, includes everything included in your sale (devices, chandeliers, etc.) until real estate agents are compensated. What if someone who has seen a property during the listing period buys it later? Some list agreements contain a backup clause that can protect you for a period of time after the list expires. For example, Florida Realtors` exclusive purchase rights list contract states that brokerage fees are payable: « If the seller transfers the property or any interest on the property to interested persons with whom the seller, broker or property holder communicated about the property prior to the termination date. » If the property is not rehired, but sold directly to a buyer who identified the property in the protection period, then a commission is due on the initial list of brokers. The mediation and litigation clause contained in the list agreement simply states that if you and your real estate agent disagree during the term of the contract, you will meet with an impartial third party to resolve problems. It is supposed to avoid unnecessary legal problems between you and your agent in the middle of the house sale. In a net list, the owner of the property sets a net price for the property, which is considered acceptable. If the property is sold at a higher price, the real estate agent will put the excess in his pocket. It is important to note that this type of list is much less frequent and even illegal in some states. In addition, for IPOs and secondary issuers, there must be 400 shareholders.
Other major markets include the Tokyo Stock Exchange or TSE, the New York Stock Exchange (NYSE), the Nasdaq and the London Stock Exchange (LSE). The terms and conditions involved in the agreement form the basis of your entire real estate transaction, so it is extremely important that you read each line carefully.