If you are at the stage of signing a contract with a real estate agent you are probably wondering about the differences of them or thinking they are all the same. They are different and have different values to you.

Most real estate agents have three contracts. They are:

  • Open Listing – A non-exclusive contract where the seller can sell the property on their own. This enables the seller to use any agent they choose and then only have to pay the agent who actually sells the home.
  • Exclusive Agency Listing – The agent will represent the seller. The agent can also bring in another agent who may have a buyer and the seller will pay both fees.
  • Exclusive Right To Sell Listing – This is the most common used as the agent will have full rights to sell the property. The seller will pay all fees and commissions.

There will typically be other conditions included as well such as length of listing, the type and amount of commission to be paid, any cancellations of contracts or expiration of contracts.

Be careful of cancellations with real estate agents. Reputable agents will have a clause about cancellations in the contract. You definitely don’t want to do business with someone who refuses to let you out of a contract even if you are unhappy.

Also be careful of the amount of commissions you will pay out. Be sure you understand this carefully so that you don’t end up paying much more in commissions than you thought.

 

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  3. Types of Listings
  4. First Home Buyers Should Sign Contracts This Week
  5. Should Sellers Arrange A Pre-Listing Home Inspection?