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Listing contract

The agent will most likely ask you to sign a Listing contract. There are a few different Listing contract types:

Open - This is basically where you pay any agent who finds you a buyer. You may often see ads that say: "brokers welcome at 2%". The broker that brings the buyer will get the 2%.
Exclusive right to sell - This is what most agents want. It gives the agent the right to claim the agreed commission, usually 6% no matter who sells the home.
Exclusive Agency -This type of agreement means that if you get the buyer yourself you do not have to pay the agents fee. If you have an idea of someone who may want to buy your home this may be a good idea.

Contracts should include
some basic information even though they may appear to be different from agent to agent.

A contract should at the very least include the following:

Time period for which the contract is valid, usually 60-90 days
Commission Rate - Usually 6%, although it may be negotiable
Marketing Plan - What the agent is actually going to do to sell your home. This may include open houses, advertisements in local papers, including your home information in the Multiple Listing Service (MLS). This should be spelled out clearly.
Any permission granted - This includes such things as allowing the use of a lockbox.
List Price - This may also include the terms of sale and what's included in the sale such as appliances.
Time the agent is protected after agreement - If an agent has a buyer and the contract has expired (there is usually a time period, 30 days is common), then the agent is protected and still gets the commission.

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