Listing agreement
National Real Estate Exam glossary · Agency
Definition
The employment contract between a seller and a brokerage authorizing the brokerage to market the property and find a buyer. Its forms differ by who earns the commission and under what circumstances: open, exclusive agency, and exclusive right-to-sell, the last guaranteeing the broker a commission no matter who procures the buyer.
Listing agreement in plain English
A listing agreement is the hiring contract between a home seller and a real-estate brokerage — it's how the seller officially puts the agent to work marketing the house and hunting for a buyer, and spells out when the agent earns their commission. The versions differ mainly in one question: does the agent get paid no matter what? With an 'exclusive right-to-sell,' the broker earns the commission even if the seller's own cousin ends up buying it — kind of like hiring one realtor and promising them the fee for any sale during the contract. Other forms ('open' or 'exclusive agency') let the seller off the hook for commission if they personally find the buyer themselves.
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Practice Listing agreement
A broker's employment contract with a seller is officially called the:
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