Is A Listing Agreement Legally Binding

The listing agreement is an important document that describes the terms of your working relationship with your real estate agent. Read carefully and make sure you understand what he is saying. If it doesn`t meet your standards, you have to negotiate terms that work for you. Here are some important points you should look for. Technically, a listing contract is a contract, so there is no provision for it to be terminated. Before signing the listing contract, you can ask your real estate agent if he accepts written conditions for the early termination of the contract. Some real estate agents and brokers will allow it, and others will not. If you are not satisfied with your real estate agent`s services during your sale, you can ask him to withdraw from the contract. A less common type of real estate agency agreement, a net listing agreement is when a listing agent guarantees to sell your home for a specified price, and if you sell the house for a higher amount, they cash in the difference as their commission.

A listing contract is a legally binding contract and the signature makes you the client of a real estate agency. If you are a client, the brokerage company owes you a fiduciary duty. This means that your seller and other brokers must follow their instructions, protect your confidential information and promote your best interests in a transaction. In return, you agree to cooperate exclusively with this broker for an agreed period if you are in the market to sell your home. In this section, you confirm that you are the owner of the house, you have the right to sell the house and you have the legal right to transfer the title. Death, bankruptcy or madness can and will terminate a listing contract. This is where the list agreement comes in – to make a written agreement between you and your agent, start the sales process and lay the groundwork for the next few months of your sale. To trade on large exchanges, companies must enter into listing agreements with the exchanges themselves.

They must meet certain criteria. For example, in 2018, the NYSE had a significant listing requirement that included total shareholder capital for the last three years of more than $10 million, a global market capitalization of $200 million and a minimum share price of $4.