As a real estate agent or seller in Colorado, it is important to know the different types of listing agreements available to you. Listing agreements are contracts between a real estate agent and a seller that outline the terms and conditions of the sale of a property. In this article, we will discuss the different types of listing agreements available in Colorado.
Exclusive Right-to-Sell Listing Agreement
The exclusive right-to-sell listing agreement is the most common type of listing agreement used in Colorado. With this agreement, the real estate agent has the exclusive right to sell the property for a specified period, usually 3 to 6 months. The agent receives a commission regardless of who sells the property, whether it’s the agent or the seller. This agreement is beneficial for sellers who want to ensure their property gets maximum market exposure.
Exclusive Agency Listing Agreement
The exclusive agency listing agreement is similar to the exclusive right-to-sell listing agreement in that the agent has the exclusive right to sell the property for a specified period, usually 3 to 6 months. However, the seller retains the right to sell the property themselves without paying the agent a commission. If the seller sells the property, the agent does not receive a commission. This agreement is beneficial for sellers who want to have control over the sale of their property.
Open Listing Agreement
The open listing agreement is a non-exclusive agreement that allows the seller to work with multiple agents. The seller is only obligated to pay a commission to the agent who brings a buyer that completes the sale. This agreement is beneficial for sellers who want to maximize their exposure without committing to one specific agent.
Net Listing Agreement
A net listing agreement is when the seller and agent agree on a minimum price that the property should sell for. The agent receives any price above the agreed-upon amount as a commission. This agreement is not commonly used in Colorado and is illegal in some states.
In conclusion, there are four types of listing agreements available in Colorado: exclusive right-to-sell, exclusive agency, open, and net listing agreements. Each agreement offers unique benefits for the seller and real estate agent. It is important to carefully review and understand the terms and conditions of each agreement before signing. As always, it is recommended to consult with a qualified real estate attorney before signing any contract.
