Listing Agreement

Seller Negotiations Tips for the Listing Agreement

For copyright reasons, we will not post a copy of the contract, but below, you will find a quick walkthrough of the Tallahassee Board of Realtors’ Listing Agreement.  Your agent will provide you with a copy of the signed listing agreement contract within 48 hours.  Don’t hesitate to contact an attorney if you have any questions!!!!! Pay special attention to clauses 5 and 12 (and maybe 13) because these are most likely to hide hidden fees and costs. Please remember that most terms and conditions are negotiable on any contract.

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1.     Date of Agreement.

This is important because there are deadlines and timelines in this contract that start on this date.

2.     Parties.

This will include your legal name(s).  We like to stick with what is on your identification card.  The title agent will ask for your photo identification at the closing table. In Florida, all real estate agencies have a designated broker. This broker is responsible for the agents employed by that brokerage. The designated broker’s name goes here.

3.     Legal description.

This is the property identification number the property appraiser and tax assessor assigned to the house.  It will also identify the subdivision if there is one. Rural homes have a “metes and bounds” description.

4.     Price.

Picked by the Seller, judged by the Buyer.

5.     Term of agreement.

This is when the contract will end (terminate) and it defines exactly how much time you will give this agent to sell your house. We normally ask for a 90-day listing.  If we have not sold it, we must regroup and figure out what is missing.

1. This is the seller’s termination clause and is one of those places where agents can hide fees.  Per the language, if you terminate the listing agreement early, you agree to reimburse the marketing expenses to the listing agent.  There is also space for an additional fee. Dirty Trick #1 – Agents that make it unreasonable to terminate the listing agreement.
2. If the broker terminates the listing agreement, they will give you ___ days of notice. This is fill-in-the-blank and can be negotiated.

6.     Personal property.

Any items attached to the wall stay with the house and become the buyer’s property after closing. Remove anything you would like to keep from the house. It is essential to do this before photos are taken.

7.     Seller’s representations.

Here you agree to provide the broker with all relevant details about the house.  If you are not honest, this clause is also an agreement to hold the broker harmless if we get sued for damages due to this sale.

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8.     Seller’s responsibilities.

You agree to provide the broker with a set of keys and allow opportunities for the buyer to see the house.  The seller agrees to send all inquiries to the broker.  You also agree to not encumber the house – including lease it without updating the broker.

9.     Broker’s responsibilities.

This is where you agree when the house will be put in the multiple listing service (MLS) within ___ (fill in the blank) days.  Give yourself enough time for quality photos and marketing.  The broker also agrees to work with other brokers to find a buyer for your home.

The seller will acknowledge that selling a house before an active MLS listing may reduce market exposure and sale price.

10. Seller’s costs.

If the broker orders something on the seller’s behalf, the seller will pay this expense. The expense will be paid even if the house does not end up closing.

11. Prorations.

If you are collecting rent, you must pay the buyer the prorated rent you have collected (and the entire deposit).  The taxes are prorated with the day of closing belonging to the buyer.

12. Brokerage fee.

1. A. This is where you agree to pay the broker for finding a ready, willing, and able buyer for your home. PLEASE NOTE: there is a clause here that states that the home does not have to close for the commission to have been earned. Also, you agree that if you sell to a buyer that your broker submitted marketing to, even if another broker showed the property, within ___ (fill in the blank) months, you will compensate the broker unless you sign a listing agreement with a new broker.

The commission amount on the contract is filled in the blank and can be a fixed price or a percentage of the sale price (not the listing price unless that is what you negotiate).  There is also a fill-in-the-blank for a transaction fee.  We see this fee more often in the big brokerages that charge their agents monthly and/or transaction fees.  Dirty Trick #2 – Agents that charge additional business fees.

1. B. Seller agrees that the broker can also earn a commission from the buyer. Under Florida law, the broker cannot receive kickbacks from lenders, inspectors, surveyors, etc.
2. C. Broker’s representation is defined here. Under Florida law, brokers are assumed to be transaction brokers. If you choose single-agent representation, other agents in the same brokerage will not be able to submit offers to you unless you sign another form agreeing to allow your agent to transition to a transaction broker. Dual agency is not allowed under Florida law for residential transactions.
3. D. This part deals with how your agent will play in the sandbox with other agents. Some agents do not evenly split the commission you agree to pay. There are many ways agents can overtly and subtly influence a buyer. If a buyer’s agent feels mistreated by a listing agent, it could result in a negative outcome for the seller. At least that is what gaming theory argues. Dirty Trick #3 – Agents who do not treat others fairly.

13. Deposits.

If the buyer cannot close the loan and defaults on the offer to purchase your house, they will lose their earnest money deposit.  This clause determines who receives this money. Dirty Trick #4 – Agents that keep any of the deposit money.

14. No verbal agreements.

Here the seller affirms that they have no other agreements in the works, including any verbal offers.  The broker is not promising to sell the house, and the seller has not promised to sell the house to anyone.

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15. Non-discrimination.

Brokers cannot discriminate based on race, color, religion, national origin, sex, age, handicap, familial status, or any other federally protected class.

16. Authorizations.

This clause deals with marketing, lock boxes, and how your house will be marketed.  If you choose not to syndicate your listing, it will not show up on secondary listing services like Zillow and Trulia.

1. Your agent will place a Bluetooth-activated lockbox near your front door. Only verified Realtors who belong to the Tallahassee Board of Realtors can access this lockbox.
2. The seller is authorizing the agent to place a sign in the yard.
3. Use of seller’s name in marketing.
4. The seller agrees to allow the broker to market the property as they see fit. This also notifies the seller that allowing buyers through your house is an opportunity for theft.
5. The seller says that the broker can put the transaction details in the MLS after closing.
6. There are several options for displaying your house on the internet, which are worth discussing with your agent.

17. Special clauses.

If you have something not addressed above, add it here.

18. Legal matters.

This is a binding contract, if you are unclear on the terms and conditions, don’t sign it. Contact an attorney to explain the terms.

19. Copy of agreement.

This states that the sales agent can sign for the broker and that the broker will provide a copy of this agreement to the seller.  The contract also has a place for your address, phone number, and email.  Fill this out in case anything happens to your agent, in case their broker needs to contact you.