When you sign a Listing Agreement with an agent you are creating seller agency. You now have someone who represents your best interests in the transaction for the sale of your property and this someone owes you fiduciary responsibilities. The majority of buyers who come through your home have signed a Buyer Agency agreement and will be represented by the agent who shows them the property.
At RE/MAX Results we use the standard listing contract provided by the St Louis Realtors. This form was revised in January of 2018. Listed below are pertinent points in the contract. Please read the contract in its entirety prior to signing:
Please contact me by text, phone (314-503-4856) or email to get a copy of the entire agreement.
Lines 1 through 9 of the residential listing contract grants the brokerage an exclusive right to sell the property. It also contains the address, city and county. Make sure the listing price is as agreed between you and your agent. If you are excluding anything from the sale make sure it is itemized in the special terms. It you need to add special agreements like the house cannot be shown after a certain time that also needs to be listed here.
Lines 10 through 12 certify that you have the legal right to the property. Be aware that under Missouri Revised Statute 474.150, any conveyance of real estate made by a married person without the written expressed assent of his or her spouse is deemed to be in fraud of the spouse’s marital rights. Also, this would be the time to talk to your agent if you think there is a chance that you are under-water; in other words, do you owe more than you can sell the home for. If that is the case, a Short Sale Supplement to the contract should be attached.
Lines 13 through 25 outline the commission, the length of the contract and the terms of payment.
Lines 26 and 27 acknowledge the availability of home warranty plans that you can offer the buyer. The price of these is anywhere between $500 to $650. They are paid at closing, the seller is covered through the listing period and the buyer is covered for a year after closing.
Lines 28 through 38 are about the commission and indicate whether the agent is charging anything above the commission listed in line 13 and also breaks out what the commission is based on.
Lines 39 through 45 are indicating basically that you are not aware of defects that could have significance to the buyer – your signature on page 4 represents this to be true.
Lines 46 through 54 on page 2 state the minimum services that the brokerage is required by law to provide its client.
Lines 56 through 79 describe dual agency. Dual agency occurs when the listing agent also represents the buyer. The obligations of the agent are outlined in this section. It’s a sticky wicket and it MUST be disclosed on the sale contract. By signing the standard Residential Listing Contract you are agreeing that your agent can be a dual agent. If you are not comfortable with dual agency, make it known so that it can be stated on the contract. (Missouri Broker Agency)
The listing contract confirms that you are represented by the agent/brokerage with whom you have entered into agreement. By signing the agreement you are agreeing to the obligations outlined in lines 135 through 176. You are allowing the agent/brokerage to use the tools of the trade (outlined in lines 87 through 126) to procure a buyer for the property. In this section, the agent completes the compensation for the Buyer’s Agent and Subagents. This figure is the percentage being paid from the full commission to the cooperating brokerage.
The larger brokerages usually assign designated agents. What this means is that even though RE/MAX Results is your agent, only one of the agents represent you and that would be me. So, if another agent at RE/MAX Results has a buyer for the property it does not create Dual Agency. If it sounds like mumbo jumbo it really isn’t but I can say that I usually take an education course on agency every 2 years.
Lines 177 to 178 are a new addition to the Residential Listing Contract (FIRPTA) regarding foreign investment in real Property.
The standard Residential Listing Contract for St Louis Realtors is 5 pages of rather small print. Please contact me if you would like a blank copy.
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