Once you have selected a listing broker for your home, you will be shown a listing agreement. Prior to signing this paperwork, it is important to understand what it is comprised of. The MA listing agreement provisions in this blog will make you a well informed seller.
Real Estate Compensation
Commission is usually specified as a percentage of the selling price. It is a violation of anti-trust laws for real estate brokers to state that a rate is set across the industry. Each company sets its own fees and, similar to everything else in real estate, it can be negotiable. It is important to assess the expertise and value provided by individual brokers and companies when comparing their fees. Simply selecting one with the lowest rate may not necessarily be in your best interest.
Listing brokers commonly split a certain portion of the fee with buyer agents. The fraction offered is displayed in the MLS system. Higher amounts can sometimes encourage buyer agents to promote your home and, likewise, low rates may discourage them. This is particularly true when the number of homes to select from is high. If the co-broke commission is not listed, you may ask for the figure.
Finally, the agreement also mentions when the listing commissions are actually earned. It is important to read this language carefully. Your contractual obligation to your listing agent is different from that to any buyers. Therefore, it is not necessarily based on a closing.
You must enable your broker to manage specific tasks. The most obvious one is to submit the details of your listing into the local MLS (multiple listing service). This service shares the listing to all real estate professionals and to a variety of authorized websites. By expanding the exposure of the information, you will increase the chances of it being sold and for a better amount. Adding signs, installing a lock box, and performing open houses are other services that you may be asked to authorize in the listing agreement.
Real estate professionals are not strictly salespeople. They are in fact agents in the legal sense and have special obligations under the law. These are referred to as fiduciary duties and include care, lawful obedience, accounting, confidentiality, diligence, disclosure, and loyalty. Basically, your real estate broker must work for you and look out for your interests. There can be instances where a broker also represents an individual wanting to purchase your listing. The paperwork will specify how this shall be handled, such as required disclosures, and what services will be given to each party. Make sure that you completely understand the potential scenarios and agree with the terms.
MA Listing Agreement Provisions
The MA listing agreement provisions in this article include only the most common components of listing agreements but may not include all language in your specific agreement. As with any kind of agreement, review the complete document, ask questions about things that are confusing, and seek additional help if you require legal advice.