Transactions
What is listing agreement?
A listing agreement is the contract between a seller and a brokerage that authorises the brokerage to market the property, setting the price, duration, compensation and the extent of exclusivity.
The main variants differ in exclusivity. An exclusive right to sell entitles the brokerage to compensation however the buyer is found. An exclusive agency listing lets the seller sell privately without owing a fee. An open listing allows multiple brokerages to compete, with only the one who produces the buyer being paid.
Duration and cancellation terms deserve as much attention as the fee. So does the protection period, which entitles the brokerage to compensation if the seller transacts shortly after expiry with a buyer the brokerage introduced.
The agreement is also what authorises MLS entry and syndication, which is why its terms shape where the property can be advertised.
Related terms
A listing agent represents the seller, taking responsibility for pricing, preparing and marketing the property, managing enquiries and viewings, and negotiating offers on the seller's behalf.
A commission split is how the fee from a transaction is divided — between the brokerages on each side, and then between each brokerage and its individual agent.
An expired listing is a property whose listing agreement ended without a sale. It becomes a prospecting target for other agents, since the owner has demonstrated intent to sell but has not achieved it.
A Multiple Listing Service is a regional database where member brokers publish their listings and agree in advance to compensate other members who bring a buyer, making cooperation between competing brokerages practical.