New York Real Estate Continuing Education - NEW YORK Approved School: RealEstateCE.com
4.0 hours Valuation, Marketing, and Listings Course Syllabus
4.0 Elective Hours.
There are four requirements for a Listing Agreement to be enforceable. The listing must be in writing. The listing must be signed by the licensee and the seller(s). It must identify the property to be sold. It must state the compensation for the licensee and a promise to pay the licensee.
There are many types of listing agreements, please note that the names of these Listing Agreements may vary from state to state.
An Exclusive Right to Sell Listing Agreement allows the listing representative to earns a listing office commission no matter who procures a purchaser. If a licensee wants to be guaranteed to earn a listing office commission, no matter who procures the buyer, then an Exclusive Right to Sell Listing Agreement should be used.
With an Exclusive Agency Listing Agreement, a listing representative does not earn a listing office commission if the Seller procures a buyer.
When using an Open Listing Agreement, the seller is only obligated to pay if the licensee brings them a ready, willing and able buyer and the licensee is the procuring cause. To be a procuring cause, the licensee must have to be primarily responsible for bringing the parties together. Only the licensee who procures the buyer gets paid a commission.
With a Net Listing Agreement the seller specifies the amount they would like to receive from net proceeds from the sale. The licensee is allowed to keep, as compensation, any amount over the net proceeds. Because a net listing does not specify the amount of compensation due the licensee, they may be illegal in many states.
This course explores the many different listing agreements, when to use each one, and how to make sure all requirements are satisfied to make your agreement enforceable.