The Listing Agreement Between Principal And Broker serves as the foundational document for professional real estate marketing and sales services in the United States. This agreement is essential when property owners wish to engage professional representation for selling or leasing their property. It outlines crucial elements including the scope of the broker's authority, commission structure, marketing obligations, and duration of the listing. The document must conform to state-specific real estate laws and often includes provisions for multiple listing service (MLS) participation, digital marketing rights, and protection periods. It's particularly important as it creates a fiduciary relationship between the parties and establishes clear expectations for the transaction process.
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1. Parties: Identifies the broker and property owner/seller with full legal names and contact details
2. Background: Brief context about the property and the owner's intention to sell/lease
3. Definitions: Key terms used throughout the agreement including 'Property', 'Listing Period', 'Listing Price', etc.
4. Appointment and Authority: Grants the broker exclusive/non-exclusive right to sell/lease the property
5. Listing Period: Specifies the duration of the agreement and any renewal terms
6. Broker's Obligations: Details the services the broker will provide including marketing, showing property, etc.
7. Owner's Obligations: Outlines the owner's responsibilities including property access, disclosure requirements
8. Commission Structure: Details the agreed commission rate and payment terms
9. Termination: Conditions under which the agreement can be terminated
1. Protection Period: Post-termination period where broker may still earn commission for prospects introduced during listing period
2. Digital Marketing Terms: Specific provisions for online marketing and virtual tours when significant digital marketing is planned
3. International Marketing: Terms for marketing property internationally, typically used for high-value properties with international appeal
4. Dual Agency: Terms governing broker representing both seller and buyer, when permitted in the jurisdiction
1. Property Description Schedule: Detailed description of the property including address, legal description, inclusions/exclusions
2. Marketing Plan: Detailed marketing strategy and planned activities
3. Property Disclosure Statement: Owner's disclosure of property condition and known issues
4. Commission Schedule: Detailed breakdown of commission structure including any variable rates
5. Agency Disclosure Form: State-mandated agency relationship disclosure
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