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What kinds of listings are there? |
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Written by Robert Whitelaw
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Friday, 11 August 2006 |
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Many newcomers to the world of real estate, particularly those selling a home for the first time, are faced with a whole set of new terminology.
One of the most important is the kinds of listings there are in California. Here is a quick rundown on the various types of listings:
| Listing Type |
Description |
| Open Listing |
A written memorandum that when signed by the seller or buyer, authorizes the broker to serve as an agent for the sale or purchase of property. Under an open listing, the owner agrees to pay a commission if the broker procures a buyer or property thta is purchased.Because the broker is not obligated to use diligence to locate a buyer or property, an open listing is considered to be a unilateral contract.Seller or buyer may give this type of listing to as many brokers as he or she sees fit. The first agent who finds, according to the listing terms, a ready willing and able buyer acceptable to seller or an acceptable property get the commission. |
| Exclusive Authorization and Right-To-Sell Listing |
Gives a broker the sole right to procure a purchaser for a property.Broker is the sole agent and has the right to a commission if a buyer is found for the property by ANYONE. The listing broker has earned a commission when a bona fide offer at a specified or accepted price and terms is produced. |
| Exclusive-Agency Listing |
Same as 2 with big difference. If seller ends up selling property themselves, they pay no commission. |
| Net Listing |
There is a longer definition for this, but it basically boils down to the broker being able to keep anything they can get above the sellers declared selling price. |
| Option Listing |
A "contract to contract". Occurs when a broker has a contract to find a buyer and the owner grants the broker an option to purchase the property himself. |
While all of these types of listings are legal in California, the Exclusive Authorization and Right To Sell is the most common. In fact, most real estate brokerages will not allow their agents to take any other kind of listing except under the most rare of circumstances.
The reason for this is that a brokerage will often incur expenses immediately after taking a listing on a home for everything from news paper ads, magazine placement and online marketing. The only type of listing agreement that insures a brokerage will be compensated for these efforts is the Exclusive Authorization and Right To Sell listing.
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