The Listing Contract
Also referred to as a Exclusive listing agreement, the listing contract gives a licensed real estate professional authorization to act on your behalf in the sale of your home. Listing contracts come in all shapes and sizes, but there are characteristics which are common to all.  Among the elements of any valid listing contract are:

Writing - All real estate contracts must be in writing.

Employment - The listing contract is a personal services contract between you and the broker/Agent.  It contains all of the terms and conditions of employing the broker/Agent and authorizing the broker/Agent to represent you in marketing and selling your home.

Compensation - For any contract to be valid, there has to be compensation.  The listing contract will specify the amount and timing of payment to your broker/Agent.  Typically, payment is an agreed upon percentage of the sales price, payable at closing.  It is important to note that your obligation to pay your broker may not absolutely depend on a finalized sales transaction.  For example, if the broker finds a bona-fide buyer who is willing to pay your asking price and agree to the terms you have offered, but you get cold feet at the last moment and decide not to sell, the broker has done his job and is entitled to be paid under the terms of the listing contract.

Buyer's Broker Compensation - Seller's now have a choice on how to compensate the Buyer's broker -

Option 1: Zero Offer to Compensation to Buyer's Agent-with out offering compensation you may experience a reduction of showings, as potential buyers may be deterred by the inability to cover their buyer's compensation.  Offers received may include requests for compensation for the buyers agent as part of concessions.  It is essential to understand that while I may advocate for offering compensation to the buyer's agent, the ultimate decision rests on the seller. My recommendations are always rooted in the seller's shared goal of a successfully selling your home under the terms of our agreement.

Option 2: Offer Compensation to Buyer's Agent- This option would cast a wider net for buyer's. We would sign a Compensation agreement that would be presented to buyer's agents.

Option 3: Refrain from offering Compensation to the Buyer's Agent, but provide Concessions - We can share with the buyer's agent that you are willing to offer buyer-paid concessions, such as covering allowable closing cost or a potion of the buyer's agent's compensation, up to a specified amount.

Option 4: Consideration of Listing - If, upon evaluation , I find that the price, condition, or terms you're seeking pose challenges to achieving a successful sale, I may choose to decline taking your listing. This decision aims to ensure that we pursue opportunities where there's a favorable likelihood of selling your home.

Title - All listing contracts will ask who has title to the property.  Broker/Agent will pull records from the local Property Tax office to validate who the owner is. Property can't be sold unless everyone with holds title interest in the property are part of the sale.

Termination date - You shouldn't sign any listing contract without a specific termination date.  The most common duration is 180 days.  If the contract has an indefinite duration such as until sold, or no duration specified at all, dont sign it.  The listing contract is a legally binding document and you don't want to get locked into one with no clearly defined termination date.  If the contract expires before your home sells and you still want to keep using the same broker, you can simply sign a new contract.

There can be and often are other elements to a listing contract.  As with any legal document, you should read the listing contract very carefully and be sure you understand exactly what you are agreeing to before signing.  If you have any questions about your listing contract it would be wise to consult a lawyer for clarification.