What is a listing agreement?
You won’t sell your house without signing this — what is a listing agreement?
Quick answer: what a listing agreement actually is
A listing agreement is the legal contract that hires a real estate brokerage to sell your home. It sets the rules: who represents you, how long the agent works for you, the asking price, the commission, and what happens if someone buys the property.
Why this matters right now
Most sellers gloss over the listing agreement and later pay for it with time, money, and headaches. Get it right up front and you control the sale. Do it wrong and you can be stuck with delays, hidden fees, or a broker who isn’t motivated to sell.
The core elements of every listing agreement
- Parties: names of the seller and the brokerage (and the brokerage’s salesperson).
- Term: start and end dates. Short terms force performance. Long terms can trap you.
- Type of listing: exclusive right to sell, exclusive agency, or open listing. Exclusive right to sell is most common — and most protective for sellers.
- List price and pricing strategy: how the price can be changed.
- Commission: percentage or flat fee and when it’s paid.
- Marketing plan: MLS entry, photos, staging, open houses, advertising budget.
- MLS and cooperation: who pays cooperating broker fees.
- Termination and remedies: how to end the contract if performance fails.
- Disclosures and legal obligations: required seller statements and responsibilities.
Types of listing agreements in plain language
- Exclusive right to sell: The agent earns commission no matter who sells the house. This aligns the agent’s incentives to market aggressively.
- Exclusive agency: The agent only earns commission if they or another broker brings the buyer — not if the seller finds the buyer themselves.
- Open listing: Any broker who brings a buyer gets paid. This offers less control and weaker marketing.
What smart sellers ask before signing
- How long is the term and can I cancel if targets aren’t met?
- What exactly is included in your marketing plan and budget?
- What is the total commission and how is it split?
- Who handles showings, offers, and negotiations?
- How will you report progress and show measurable results?
Final word — make the agreement work for you
A listing agreement is not paperwork to ignore. It’s your roadmap to a faster sale and a higher net price. Treat it like a business contract. Insist on clear timelines, measurable deliverables, and a straightforward cancellation clause.
For a local, no-nonsense review of your listing agreement and a seller strategy that gets results, contact Tony Sousa. Email: tony@sousasells.ca | Phone: 416-477-2620 | Website: https://www.sousasells.ca
