The Residential Listing Agreement Compensation To Broker is a fundamental document in U.S. residential real estate transactions. It serves as the primary agreement establishing the financial relationship between property owners and real estate brokers. This document is essential when a property owner wishes to engage a broker's services to list and sell their residential property. It typically includes specific commission rates, payment terms, broker duties, seller obligations, and protection periods. The agreement must comply with both federal regulations like RESPA and state-specific real estate laws, making it a crucial document for establishing clear compensation terms and protecting both parties' interests.
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1. Parties: Identification of the property owner (seller) and the broker
2. Background: Context of the agreement and property details
3. Definitions: Key terms used throughout the agreement
4. Listing Terms: Duration of listing, asking price, and property description
5. Broker Compensation: Commission rate and payment terms
6. Broker Duties: Services to be provided by the broker
7. Seller Obligations: Responsibilities and commitments of the seller
8. Termination: Conditions and process for ending the agreement
1. Multiple Listing Service Terms: Terms related to MLS listing, used when property will be listed on MLS
2. Virtual Tour/Photography Rights: Terms regarding marketing materials, used when special marketing is planned
3. Protection Period: Post-termination commission terms, used to protect broker's interests
4. Dual Agency Provisions: Used when broker may represent both buyer and seller
1. Property Description Schedule: Detailed description of the property being listed
2. Marketing Plan: Detailed marketing strategy and commitments
3. Agency Disclosure Form: State-required agency relationship disclosures
4. Commission Schedule: Detailed breakdown of commission structures for different scenarios
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