The parties agree to take on specific contractual duties when entering into a listing agreement. The terms of the listing agreement stipulates the obligations of the broker, as well as establishing under what conditions the seller must pay the broker a commission. This lesson covers listing agreements, multiple listing services, and the basic disclosure requirements of sellers and brokers.
Most states require a listing agreement to be in writing due to the statute of frauds.
Listings do not give brokers rights to the listed property and are not subject to government recording as are deeds. If the seller refuses to sell after accepting an offer, the broker cannot force the sale. The broker may, however, be entitled to sue for a commission. To close the sale, the buyer may be able to use the remedy of specific performance, a legal action in which a court requires a party to perform the terms of a contract to which he or she has agreed. In an exclusive right to sell listing , the agent is entitled to a commission if, during the term of the listing or any extension of the original agreement, the agent or anyone else procures a buyer who is ready, willing, and able to purchase the listed property.