Newbury MA Listing Contract Terms

After you have selected a listing broker for your property, you will be given a listing contract. Prior to signing this document, it is helpful to understand the provisions normally included. The Newbury MA listing contract terms in this article will better prepare you for this.

Professional Fees

Commission is normally itemized as a percentage of the selling price. It is against the law for Realtors to state that a rate is set across the industry. Every brokerage determines its own rates and, like everything else in real estate, it can change. It is important to evaluate the experience and value provided by individual real estate agents when comparing their fees. Simply finding one with the best fee may not necessarily benefit you in the end.

Listing agents typically split a specific percentage of the commission with co-broke agents (buyer agents). The percentage offered is entered in the MLS system. Higher rates may encourage buyer agents to show your listing and, likewise, lower rates can discourage them. This is particularly true when the number of available options is high. If the co-broke commission is not shown, you may ask about it.

Lastly, the contract also indicates when the professional fees are officially earned. This is very important. Your contractual responsibility to your agent is not the same as those owed to other parties. Therefore, it is not only dependent on a closing.

Professional Services

You must authorize your broker to handle specific tasks. The most obvious one is to enter the details of your property into the local MLS (multiple listing service). This database shares the information to all real estate brokers and to a variety of authorized websites. By enlarging the pool of home buyers exposed to the information, you will increase the chances of it being sold and for a better value. Placing signs, attaching a lock box, and performing open houses are other items that you may be requested to sign off on in the listing contract.

Legal Responsibilities

Real estate brokers are not only salespeople. They are in fact agents in the legal definition and have particular obligations under the law. These are called fiduciary duties and include confidentiality, care, lawful obedience, accounting of funds, loyalty, diligence, and disclosure. Basically, your agent must work for you and look out for your interests. There can be instances where a agent also represents a party interested in buying your home. The listing contract will stipulate how this will be handled, such as additional disclosures, and what services will be due to each party..

Newbury MA Listing Contract Terms

The Newbury MA listing contract terms in this article are some of the most typical terms of listing contracts but may not address all language in your specific contract. As with any type of contract, read through the full document, inquire about anything that is not clear, and speak with an attorney if you prefer legal advice.

About Editor-John P. Wells

I am a resident of Newburyport and have worked in education, high tech and urban development. My interests in architecture and construction are invaluable to my clients. For more information please visit the Wellsco website.