Listing Contract In Property

Types of Listing Contracts

A listing contract is an agreement between you and a licensed real estate broker that authorizes the broker to represent you in the process of selling your home. There are several different types of listing contracts, but very few of them are used.
A listing contract is a contract between a real estate broker (or his/her agent representatives, acting in the broker's name) and a seller or sellers of real property to give the broker the right to offer the property for sale.

Open Listing

This is a non-exclusive contract. An open listing lets an owner sell her home by herself. It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.

The big difference is an owner will probably pay only a selling broker's commission, which is about one-half of typical fees. The reason is because the owner is unrepresented. Therefore, owners do not pay a broker to represent the owner, but do pay the broker to represent the buyer. However, if the owner finds the buyer herself, the owner will not owe anybody a
commission. Open listings are not popular with many full-service real estate brokers. Generally, the only people who use open listings are FSBO's (for sale by owner) who are willing to pay a partial commission to an agent for finding a buyer. You shouldn't expect any marketing or advertising at all with an open listing contract.

One-Time Show

This type of listing contract is pretty much the same to open listing. It's generally used by people trying to sell their own home and involving an agent for the home showings. The listing contract identifies the potential buyer and guarantees the agent a commission if that buyer buys the home. Just like open listings, this type lacks of marketing efforts.

Showing Listing

Also called the “one time” agreement. This is an agreement whereby a FSBO agrees to let an agent show the home to an interested client and pay a commission to the agent if that showing results in a sale. The purpose being to prevent a seller from letting an agent show the property, then deal directly with the client, to avoid paying any commission.

Exclusive Right to Sell Listing

The most popular type of listing with sellers and brokers, this contract gives the full right for your broker to do whatever it takes to sell your house. For obvious reasons, this is probably the type of contract where you can expect the most incentive from the agent - a good marketing effort can take place here, and the homeowners' work is much reduced. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.

Exclusive Agency Listing

During your home selling, you will find that different types of listing contracts involve a lot of different people. This one involves a broker. Basically an exclusive agency listing will give you the right to sell your own home, without paying the broker any commission unless the house is sold through a licensed real estate professional. Should the house be sold without any help of agents, the contract allows homeowners to pay no commission at all. The reason why this type of listing contract is widely used is the temptation of not having to pay your broker.

An exclusive agency listing is similar to an open listing except the major difference is the broker will represent the owner. The owner still reserves the right to sell the property herself and not pay a commission. The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the
broker is paid a listing commission that is shared with the selling broker, so the owner pays both fees.


"Before you choose your contract, always make sure you know every type of listing contracts available to you. Take in mind how much effort you would like to contribute to the home selling - this is often what distinguishes the types. Discuss the possibilities and disadvantages of each type. Remember, a listing contract is your first legal step in selling your house - take that step carefully."