The listing agreement is a contract that provides an outlines forms and negotiations related to the sale of your property. The contract is between you and your agent’s brokerage company. It is important that the agreement clearly outlines out the rights and obligations of you and your agent and that it is an accurate representation of your property details.
The listing agreement will outline:
- The compensation for your real estate agent;
- The duration of the contract;
- The listing price of the property;
- Mortgage details of the property, including the mortgage balance, mortgage monthly payments and mortgage due date;
- An accurate description of the property;
- The amount of annual property taxes; and
- Any easements, rights of way, liens or charges against the property.
Ask your listing real estate agent about disclosure. Disclosure is the seller's obligation to disclose any relevant facts about property for sale. Relevant facts include material details about the property such as anything that could materially affect the sale price or influence a buyer's decision to buy it. Post-sale disputes and lawsuits often relate to defects and disclosure; however, many of these disputes can be avoided if accurate and appropriate disclosures are made. When selling a property, purposefully withholding information can have significant legal consequences.