Things Realtors Need to Know About Listing Agreements

Having a listing agreement with a seller is a must when doing business as a real estate agent, since ensures that the agent is properly compensated for his or her efforts in marketing the seller’s property. This process will hopefully result in providing the seller with the highest price for their home at the most advantageous terms.

However, there are five things Realtors should be aware of when it comes to listing agreements:

• According to Florida law, listing agreements must include a termination date.
• Listing agreements cannot include an automatic renewal clause.
• You should agree with the seller on an end date for the listing agreement with an understanding that the date can be extended or modified.
• You will still be entitled to your commission if the closing occurs after the termination date if you use a Florida Realtors’ listing agreement. This agreement includes a clause that extends the agreement through the closing, and covers you as well as any other agent involved in the transaction.
• You can build in protection for your commission in case a buyer who toured the property while it was in effect buys the property after the termination date on the listing agreement. The Florida Realtors’ listing agreement includes a protection period provision that enables you to specify the number of days to cover your commission in case a prospect buys after the termination date.
• If the seller had a previous listing agreement with another firm, be sure that this agreement has terminated and is not renewable before executing your own listing agreement with the seller.