The list agreement specifies in detail what the real estate agent has authorized to sell the property. This implies that if the exclusive listing contract expires after three months and the house has not been sold, the seller or agent may decide not to renew the contract. The seller may want to work with another agent or agent may determine that the house is likely not to sell and is not worth their time. As contracts, list agreements can be terminated in the same way that any contract can be terminated: an extender clause protects against such an event and guarantees that the agent receives his commission. The listing agreement will also have interim dates for the closing and holding of the purchaser, as well as details of the transaction, such as the securities and fiduciary business used for the financial statements and the party that deals with certain aspects of the transaction, such as filling out transaction documents, submitting necessary forms and dissurring funds. The listing agreement will also have certain guarantees from the owner, such as the fact that the property will be in the same condition when it is sold as at the time it was presented; that some repairs or modifications have been made and that the property complies with the rules of shingles and construction. Listing agreements are employment contracts between sellers of real estate and real estate agents for the professional services of the broker. The listing agreement creates an agency and loyalty relationship between the seller and the broker, the seller being the client and the broker his agent. The broker usually has sellers who work for them to provide services that consist primarily of finding buyers for the property. However, the sellers work for the broker and not for the seller. Only the broker represents the seller.
What if someone who has seen a property during the listing period buys it later? Some list agreements contain a backup clause that can protect you for a period of time after the list expires. For example, Florida Realtors` exclusive purchase rights list contract states that brokerage fees are payable: “If the seller transfers the property or any interest on the property to interested persons with whom the seller, broker or property holder communicated about the property prior to the termination date.” If the property is not rehired, but sold directly to a buyer who identified the property in the protection period, then a commission is due on the initial list of brokers. While the seller is not limited to a price determined by a competitive market analysis or even a formal valuation, the broker will have little interest in selling a property with a much higher price. A price that is too high will be difficult or impossible to sell before the listing contract expires, and brokers, like most people, do not want to work for nothing. There is no exclusivity for an open offer – any number of brokers or agents can represent the seller. The commission will be paid to whom a buyer will be paid for the property.