Apr. 29, 2009
Tagged with: listing agreements
In Vermont there are two popularly used types of property listing agreements. Exclusive right to market property agreement and the Exclusive agency marketing agreement. What are the differences and similarities, and which one if right for you? Both listings agreements are set up between a brokerage firm and an owner for a specified period of time. In the exclusive right to market agreement the brokerage firm is owed a commission if the property is sold within the agreed period regardless of who was procuring cause. In the exclusive agency marketing agreement the brokerage firm is only owed a commission if they are the procuring cause of sale within the agreed listing period. If the owner finds a buyer himself and doesn’t involve the broker then no commission is due to the brokerage. The last type of listings agreement is an open listing. This type of listings is not commonly used as the risk of loss if much higher for a brokerage. In an open listing an owner does not grant any one brokerage an exclusive right, but instead employs multiple brokerages to try to sell their property simultaneously. In an open listing an owner also reserves their right to sell their property themselves and if they do no brokerage would be due commission. Commission would only be due to the brokerage that is procuring cause of the sale. All brokerage offices have their own policies as to which kinds of listings they will take on. Ask around to find a brokerage that will give you the type of listing that best suits your needs as a seller.