The listing agreement is a formal contract which binds the right to sell your residential property to a real estate agent acting on behalf of a real estate broker. This agreement always includes:
1. The date when the agreement comes into force and the date when it expires.
2. The listing price which has been agreed to in order to place the property for sale on the market.
3. The level of compensation percentage which is offered to the real estate broker. In some cases this compensation is expressed as a flat fee, and not a portion of the final sale price.
4. The complete conditions and terms whereby the seller will pay the brokerage fee.
5. Specific authorizations to the real estate broker to lend full cooperation to other brokers acting as sub-agents or agents for the buyer(s) and the precise extent of the compensation authorized to be offered to those other brokers when their services enter into the transaction.
6. Specific authorizations to the real estate broker as to whether to reveal or not the existence of previously received offers.