Definition
This is the contract between you and a real estate agent outlining representation terms, commission rate, marketing plan, and term of the listing.
Where you’ll meet it
Do I need an agent, and how do I price it?
See it in Selling my home · Step 2About this term
A listing agreement establishes the relationship between the seller and the real estate agent. It specifies the commission rate (typically 5-6% split between listing and buyer's agents), the term of the listing (usually 90-180 days), marketing responsibilities, and exclusive right to sell provisions. The listing agreement also includes terms for termination and any required earnest money held by the agent.
Pro Tip
Review listing agreement terms carefully, especially commission rates and termination.
Example
The seller signed a 90-day exclusive right to sell listing agreement at 6% commission.