Transcript

What is a listing agreement? | Freilich Law | Michael Freilich | freilichlaw.com | (410) 321-0040

Typically, the phrase listing agreement refers to the agreement between the seller and the broker and/or agent. Agents work for brokers, and it controls the terms of their relationship. Right under the big, bold words “Listing Agreement” is typically the phrase “Authorization to Sell.” You’re not authorizing them to sell, you’re authorizing them to show and to market, although there’s language in most listing agreements that says you’re authorizing the agent to sell.

It should be changed to say “Authorized to Show.” Unfortunately, most brokers don’t understand the difference, and fewer agents that understand the difference. But that will control your relationship with the particular agent or broker and through the rest of the deal, even sometimes after the closing of the transaction. It must be carefully reviewed. It is something that a real estate attorney needs to go over with you, explain to you, and explain how to minimize certain risks and how to shift certain burdens of certain expenses.