The Primary Parts of a Real Estate Listing Agreement

When you choose to hire a real estate listing agent to sell your home, the agent will ask you to sign some documents. One of these documents is a listing agreement, but there may be other papers you must also sign. If you are new to this event, here is an explanation of what these documents are and why you must sign them when selling a house.

The Basics of a Listing Agreement

A listing agreement is a contract between you and the agent. Signing this agreement gives the agent the responsibility of doing everything possible to sell the house, and it requires that you pay the agent when the house closes. A listing agreement contains a lot of vital details, including the following:

  • The date of the contract and the length of time it lasts
  • The details about the home you are selling, including the address, size, and features
  • The commission rate you agree to pay for the sale
  • The type of listing and specific details about how it works
  • The responsibilities you have and those that the agent has

A listing agreement is generally several pages, and the agent will fill it out with you. Once completed, you should review it and sign if you agree with what it says.

The Disclosure Form

The next thing the agent will ask you to fill out and sign is a disclosure form. A disclosure form is a legal requirement when selling a house, and your agent will keep this document with the listing agreement. If people are interested in buying your house, they may ask to see it. The disclosure form allows you to offer details about the home, including the age of the systems in the house and known defects. It will ask you if everything in the house works. It also requires you to state if you know of any hazards in the home, such as lead paint.

You must fill out this form with honest and accurate answers, even if they are derogatory. If you lie and a buyer finds out, you can suffer consequences for this action.

Before you rush into listing your home, make sure you are ready for this event. You should also make sure you are selling your house at the right time of year. To learn more about these things and other home-selling topics, talk to a local real estate agent today.