There are several aspects to selling a property. Once you have interviewed and selected a listing agent for your property, you will be given a listing agreement. Prior to signing this document, it is helpful to be familiar with what it is comprised of. The Florida listing agreement terms below will better prepare you for this.
Professional Fees
Commission is typically itemized as a percentage of the selling price. It is against the law for real estate brokers to imply that a rate is standard in the market. Every brokerage sets its own fees and, like everything else in real estate, it can be changed. It is important to assess the expertise and services offered by individual real estate professionals when comparing their fees. Simply selecting one with the lowest fee may not necessarily benefit you in the end.
Listing brokers usually split a specific portion of the commission with buyer agents. The amount shared is shown in the MLS system. Higher rates may encourage buyer agents to promote your listing and, likewise, low rates can discourage them. This is especially true when the number of homes to select from is high. If the co-broke commission is not listed, you can ask for the figure.
Lastly, the agreement also notes when the listing commissions are officially earned. This is very important. Your contractual responsibility to your listing agent is not the same as those owed to other parties. Therefore, it is not only dependent on a closing.
Marketing Services
You must authorize your broker to complete certain tasks. The most important one is to enter the details of your listing into the local MLS (multiple listing service). This service shares the listing to all real estate professionals and to a variety of authorized websites. By expanding the pool of individuals exposed to the information, you will increase the likelihood of selling and for a higher amount. Adding signs, installing a lock box, and scheduling open houses are other items that you may be requested to authorize in the listing agreement.
Fiduciary Responsibilities
Real estate professionals are not just salespeople. They are in fact agents in the legal sense and have specific obligations under real estate law. These are referred to as fiduciary duties and include disclosure, care, lawful obedience, accounting, loyalty, confidentiality, and diligence. In general, your broker must work for you and look out for your best interests. There may be situations where a real estate professional also works for an individual interested in buying your listing. The listing contract will stipulate how this will be handled, such as prior disclosures, and what services will be due to each party. Make sure that you fully understand this and are comfortable with them.
Florida Listing Agreement Terms
The Florida listing agreement terms above include only the most typical terms of listing agreements but may not include all language in your specific agreement. As with any kind of agreement, review the complete document carefully, ask questions about things that are confusing, and consult with an attorney if you desire legal advice.
