Listing Agreements

Listing Agreements ## What Is a Listing Agreement? A listing agreement is a contract between a property owner (seller) and a real estate broker that authorizes the broker to act as the seller's agent to market and sell the property. Under California law, listing agreements must be in writing (Statute of Frauds) and must include the listing price, the broker's compensation, and an expiration date (required by Business and Professions Code §10176). Key point: A listing agreement is an employment contract between the seller and the broker — not the salesperson. The salesperson acts under the supervision of their employing broker. --- ## Types of Listing Agreements ### Exclusive Right to Sell (Most Common in CA) The exclusive right to sell gives the listing broker the right to receive a commission regardless of who procures the buyer — even if the seller finds their own buyer through their own efforts. This is the most protective form of listing for the broker and is the standard listing type in California residential real estate. Key features: - The broker earns a commission on every sale during the listing period, no matter who found the buyer - The broker is most motivated to spend money marketing the property because their commission is guaranteed if the property sells - Most brokers will only accept this type of listing because it protects their investment of time and money ### Exclusive Agency Listing The exclusive agency listing gives one broker the exclusive right to represent the seller, but the seller retains the right to sell the property themselves without owing a commission. The broker earns a commission only if a buyer is found by the…