Real Estate Term of the Day: Listing Agreement
LISTING AGREEMENT – a contract between a seller and a real estate professional to market and sell a home. A listing agreement obligates the real estate professional to seek qualified buyers, report all purchase offers and help negotiate the highest possible price and most favorable terms for the property seller (HUD Glossary)
The Exclusive Right-to-Sell Listing Contract is the Colorado Real Estate Commission approved document to establish the listing agreement.
The Uniform Brokerage Duties listed in the Exclusive Right-to-Sell Listing Contract are outlined in Section 5 of the contract:
5. BROKERAGE DUTIES. Brokerage Firm, acting through Broker, as either a Transaction-Broker or a Seller’s Agent, must 79 perform the following Uniform Duties when working with Seller:
5.1. Broker must exercise reasonable skill and care for Seller, including, but not limited to the following:
5.1.1. Performing the terms of any written or oral agreement with Seller;
5.1.2. Presenting all offers to and from Seller in a timely manner regardless of whether the Property is subject to a contract for Sale;
5.1.3. Disclosing to Seller adverse material facts actually known by Broker;
5.1.4. Advising Seller regarding the transaction and advising Seller to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker;
5.1.5. Accounting in a timely manner for all money and property received; and
5.1.6. Keeping Seller fully informed regarding the transaction.
5.2. Broker must not disclose the following information without the informed consent of Seller:
5.2.1. That Seller is willing to accept less than the asking price for the Property;
5.2.2. What the motivating factors are for Seller to sell the Property;
5.2.3. That Seller will agree to financing terms other than those offered;
5.2.4. Any material information about Seller unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; or
5.2.5. Any facts or suspicions regarding circumstances that could psychologically impact or stigmatize the Property.
5.3. Seller consents to Broker’s disclosure of Seller’s confidential information to the supervising broker or designee for the purpose of proper supervision, provided such supervising broker or designee does not further disclose such information without consent of Seller, or use such information to the detriment of Seller.
5.4. Brokerage Firm may have agreements with other sellers to market and sell their property. Broker may show alternative properties not owned by Seller to other prospective buyers and list competing properties for sale.
5.5. Broker is not obligated to seek additional offers to purchase the Property while the Property is subject to a contract for Sale.
5.6. Broker has no duty to conduct an independent inspection of the Property for the benefit of a buyer and has no duty to 104 independently verify the accuracy or completeness of statements made by Seller or independent inspectors. Broker has no duty to 105 conduct an independent investigation of a buyer’s financial condition or to verify the accuracy or completeness of any statement 106 made by a buyer.
5.7. Seller understands that Seller is not liable for Broker’s acts or omissions that have not been approved, directed, or ratified by Seller.
5.8. When asked, Broker ___Will ___Will Not disclose to prospective buyers and cooperating brokers the existence of offers on the Property and whether the offers were obtained by Broker, a broker within Brokerage Firm or by another broker.
The Additional Duties listed in the Exclusive Right-to-Sell Listing Contract are outlined in Section 6 of the contract:
6. ADDITIONAL DUTIES OF SELLER’S AGENT. If the Seller Agency box at the top of page 1 is checked, Broker is Seller’s Agent, with the following additional duties:
6.1. Promoting the interests of Seller with the utmost good faith, loyalty and fidelity;
6.2. Seeking a price and terms that are set forth in this Seller Listing Contract; and
6.3. Counseling Seller as to any material benefits or risks of a transaction that are actually known by Broker.
See also: EXCLUSIVE RIGHT-TO-SELL LISTING