{"id":301717,"date":"2026-04-27T00:51:21","date_gmt":"2026-04-27T04:51:21","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=301717"},"modified":"2026-04-27T00:51:26","modified_gmt":"2026-04-27T04:51:26","slug":"listing-agreement","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/listing-agreement\/","title":{"rendered":"Listing Agreement: What Is It and What Does It Contain?"},"content":{"rendered":"\n<p class=\"margin-top-28\"><a   href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/highlights-from-the-profile-of-home-buyers-and-sellers\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">9 out of 10 sellers<\/a> rely on a real estate agent to sell their homes. If you, too, prefer a broker to list your house for sale, one of the most important steps is to sign a listing agreement. <\/p>\n\n\n\n<p>A listing agreement dictates the terms of your relationship with your agent throughout the sales process. In order to make informed decisions, you must understand all its intricacies.<\/p>\n\n\n\n<div class=\"block-takeaways\" style=\"margin-top:20px !important\"><p class=\"topHead\"><\/p><p class=\"headKeytake\"><b>Key Takeaways<\/b><\/p>\n<ul>\n<li>A typical listing agreement lasts for an average of 6 months.<\/li>\n<li>There are 4 <a     href=\"#Types-of-Listing-Agreements\">types of listing agreements<\/a>: Open, Exclusive Agency, Exclusive Right-to-Sell, and Net Listing Agreement.<\/li>\n<li>Net listing agreements are only legal in Florida, Texas, and California.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"What-Is-a-Listing-Agreement?\"><strong>What Is a Listing Agreement?<\/strong><\/h2>\n\n\n\n<p>A listing agreement is a contract between a property owner and a <a   href=\"https:\/\/www.houzeo.com\/blog\/real-estate-brokers\/\" target=\"_blank\" rel=\"noreferrer noopener\">real estate broker<\/a> or agent. By signing the agreement, you permit the agent to find buyers for your property and represent your interest in the deal.<\/p>\n\n\n\n<p>The agreement outlines the conditions under which the broker will work. These include the duration of the agreement, the asking price, the duties of the agent and the seller, and the <a   href=\"https:\/\/www.houzeo.com\/blog\/average-real-estate-agent-commission\/\" target=\"_blank\" rel=\"noreferrer noopener\">agent\u2019s commission<\/a> for the successful sale of the property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"How-Does-a-Listing-Agreement-Work?\"><strong>How Does a Listing Agreement Work?<\/strong><\/h2>\n\n\n\n<p>A listing agreement is a contract of employment, i.e., you hire the broker to represent you and the property to buyers. It is not a contract to sell a house. So, no transfer of property takes place between you and the agent.<\/p>\n\n\n\n<p>The agreement is valid only for the agreed-upon period or ends with the sale of the property. However, it may also include terms for early termination, under which either party can end the agreement subject to certain conditions.<\/p>\n\n\n\n<p>While being <a   href=\"https:\/\/www.houzeo.com\/blog\/what-does-under-contract-mean\/\" target=\"_blank\" rel=\"noreferrer noopener\">under contract<\/a>, the broker must act in the best interests of the seller. They must maintain confidentiality and provide truthful, professional advice. In turn, you must cooperate with the broker and pay their commission.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Types-of-Listing-Agreements\"><strong>Types of Listing Agreements<\/strong><\/h2>\n\n\n\n<p>There are 4 unique types of listing agreements. They vary based on the agent and their role in the sales process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>1. Open Listing<\/strong><\/h3>\n\n\n\n<p>Under the <a   href=\"https:\/\/www.houzeo.com\/blog\/open-listing-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">open listing agreement<\/a>, you can employ multiple brokers to represent you. Only the agent who successfully closes the deal with a buyer gets the commission.<\/p>\n\n\n\n<p>You also reserve the right to sell the property independently without your agent. In such a scenario, you are free from any obligation to pay them a commission.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>2. Exclusive Agency Listing<\/strong><\/h3>\n\n\n\n<p>An <a   href=\"https:\/\/www.houzeo.com\/blog\/exclusive-agency-listing\/\" target=\"_blank\" rel=\"noreferrer noopener\">exclusive agency listing agreement<\/a> authorizes one broker to act on your behalf. If the broker sells the property, you must pay their commission. You can also sell the property without the broker to avoid commission.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>3. Exclusive Right-to-Sell Listing<\/strong><\/h3>\n\n\n\n<p>Under the <a   href=\"https:\/\/www.houzeo.com\/blog\/exclusive-right-to-sell\/\" target=\"_blank\" rel=\"noreferrer noopener\">exclusive right-to-sell listing agreement<\/a>, you grant the sole agent the authority to market and sell your house. But you must pay the agent\u2019s commission regardless of who brings in the buyer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>4. Net Listing Agreement<\/strong><\/h3>\n\n\n\n<p>A <a   href=\"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">net listing agreement<\/a> is quite rare. In fact, it is only legal in Florida, Texas, and California. Under this contract, you set a minimum sale price for your property. Any amount exceeding the price limit goes to the agent as their commission.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Contents-of-a-Listing-Agreement\"><strong>Contents of a Listing Agreement<\/strong><\/h2>\n\n\n\n<p>The contents of a listing agreement may vary depending on your state and your deal with the agent. But the basic structure remains the same. Here is what a standard listing agreement contains:<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>1. Agreement&#8217;s Duration<\/strong><\/h3>\n\n\n\n<p>The first important detail of an agreement is its duration, also referred to as the listing period. The contract contains the agreement&#8217;s commencement and expiration date on the first page.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>2. Listing Price<\/strong><\/h3>\n\n\n\n<p>A real estate agent&#8217;s key responsibility is to help sellers <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-price-your-home-for-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\">decide the listing price of the property<\/a>. The agreement clearly states the listing price you and the broker agree upon.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>3. Real Estate Commission Structure<\/strong><\/h3>\n\n\n\n<p>The listing agreement mentions the total real estate commission as a percentage of the listing price. It also mentions the ratio in which this amount should be split between your agent and the buyer&#8217;s agent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>4. Protection Period Clause<\/strong><\/h3>\n\n\n\n<p>The protection period clause ensures agents get their commission for the sales that occur after the listing period. The clause is only valid if the buyer was introduced by the agent.<\/p>\n\n\n\n<p>The listing agreement also mentions the exact number of days the protection period is valid after the listing period expires. Generally, these contracts have a <a   href=\"https:\/\/www.tallboxdesign.com\/real-estate-protection-clauses-and-listing-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">30 to 180-day<\/a> broker protection clause.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>5. Agreement With Other Brokers<\/strong><\/h3>\n\n\n\n<p>The agreement also has a clause to ensure that the seller has no prior agreement with another broker. It protects the agent&#8217;s interest and assures them that they are your sole representative.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>6. Included and Excluded Items<\/strong><\/h3>\n\n\n\n<p>In the agreement, you must specify which items are included in the sale of the house and which are not. Generally, the sale incorporates items like fixtures and fittings, while personal items and appliances are excluded.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>7. Permission to List House on an MLS<\/strong><\/h3>\n\n\n\n<p>Most real estate agents use <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-mls-in-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\">multiple listing services<\/a>, a database of properties, to list houses. Although it is advised that sellers should get an MLS listing, you can choose to go off market.<\/p>\n\n\n\n<p>To help you make a decision, the agreement has a section that explains the benefits of the MLS and the impact of not listing on it. If you don\u2019t want to list on the MLS, you must provide written instructions to your broker as per the agreement&#8217;s <em>Presenting All Offers<\/em> section.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>8. Responsibilities of the Broker and the Seller<\/strong><\/h3>\n\n\n\n<p>This section of the listing contract mentions the duties of the broker and the seller. It requires the broker to make reasonable efforts and due diligence to sell the house.<\/p>\n\n\n\n<p>The contract also requires sellers to cooperate with brokers. You must act in good faith and consider all the offers you receive from your agent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>9. Agency Relationships<\/strong><\/h3>\n\n\n\n<p>The agency relationships section explains when and how the broker will represent the seller and the property during the transaction. It also states how agents shall operate in case of dual agency, i.e., when they represent both buyer and seller.<\/p>\n\n\n\n<p>The section generally includes a separate document attached to the listing agreement. You must also acknowledge that you have received and read this document. <\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>10. Damage Protection<\/strong><\/h3>\n\n\n\n<p>Under this section, you acknowledge that the broker isn&#8217;t accountable for damage to personal items or the house, thefts, and injuries. Instead, the agreement advises you to get homeowner\u2019s insurance to cover such losses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>11. Permission to Advertise the Property<\/strong><\/h3>\n\n\n\n<p>This section authorizes the broker to provide <a   href=\"https:\/\/www.houzeo.com\/blog\/real-estate-photography\/\" target=\"_blank\" rel=\"noreferrer noopener\">pictures of your house<\/a>, visual tours, and other media to buyers. It also permits the broker to use photographs to advertise your home online.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>12. Permission to Install Lockbox<\/strong><\/h3>\n\n\n\n<p>Lockboxes are important devices as they allow buyer agents to access your home and show it to clients. These accompany a mobile app that lets your broker see when the lockbox was accessed and by which agent.<\/p>\n\n\n\n<p>You must acknowledge this section to authorize your <a   href=\"https:\/\/www.houzeo.com\/blog\/listing-agent\/\" target=\"_blank\" rel=\"noreferrer noopener\">listing agent<\/a> to set up a lockbox on your property. However, you can tick a box to stop your agent from installing a lockbox.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>13. Permission to Put a For-Sale Sign<\/strong><\/h3>\n\n\n\n<p>You must also permit your agent to place a for-sale sign on your property. If you don\u2019t want to authorize, you can tick the box given in the listing agreement&#8217;s <em>Sign <\/em>section.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>14. Dispute Resolution<\/strong><\/h3>\n\n\n\n<p>Lastly, the listing agreement also outlines the course of action in case of a dispute between you and the broker. Typically, it requires the included parties to resolve disputes via mediation before filing lawsuits.<\/p>\n\n\n\n<p>To help with dispute resolution, the section provides the terms under which the mediation should occur. Moreover, there&#8217;s also an advisory for the parties to follow when they reach an agreement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Termination-of-a-Listing-Agreement\"><strong>Termination of a Listing Agreement<\/strong><\/h2>\n\n\n\n<p>The listing agreement specifies conditions under which you can terminate your relationship with the agent. However, if you have other reasons, termination can be difficult.<\/p>\n\n\n\n<p>So, you must consult a <a   href=\"https:\/\/www.houzeo.com\/blog\/real-estate-attorney\/\" target=\"_blank\" rel=\"noreferrer noopener\">real estate attorney<\/a> to ensure that you comply with the terms of the contract. If the agreement has a severance clause, you may also have to pay a fee to the broker to cover any losses due to termination.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Final-Words\"><strong>Final Words<\/strong><\/h2>\n\n\n\n<p>A listing agreement is essential if you want an agent to represent your property to buyers and handle the sales process. However, before you sign a contract, review all its details and clauses to avoid confusion at later stages.<\/p>\n\n\n\n<p>If you want to list your home for sale or hire a broker, turn to Houzeo, and get an MLS listing within 24 hours. You can also request contract review, comparative market analysis, and contract-to-close consulting from a licensed broker.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"HowHZWorks\"><strong>Eager to Know More?<\/strong><\/h2>\n\n\n\n<p>We\u2019ve got you covered. Check out the following video to understand why Houzeo is one of the best for sale by owner websites in the U.S.<\/p>\n\n\n\n<div class=\"wp-block-houzeo-youtube-text-without-button mainVideoSec hide-title\"><div class=\"leftBlockVideo\"><iframe src=\"https:\/\/www.youtube.com\/embed\/n4nnovcp8u8\" frameborder=\"0\" allowfullscreen><\/iframe><\/div><div class=\"rightBlockVideo\"><p class=\"VideoHead\"><strong>Traditional 3% Listing Agent Fee is Dead \u2620\ufe0f<\/strong><\/p><p class=\"VideoText\">Watch how you can get the MLS exposure for a fraction of the cost!<\/p><\/div><\/div>\n\n\n\n<p class=\"margin-top-28\"><strong><strong>\u00bb <\/strong>NEED MORE CLARITY?&nbsp;<\/strong>Read these exclusive&nbsp;<a   href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why it is one of the&nbsp;<a   href=\"https:\/\/www.houzeo.com\/blog\/for-sale-by-owner-websites\/\" target=\"_blank\" rel=\"noreferrer noopener\">best website For Sale By Owner<\/a>&nbsp;in America.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">A Listing Agreement is a contract where the seller grants a real estate agent to act as a broker, and market and sell their...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">8 mins read<\/span><span class=\"date\">Apr 27, 2026<\/span><\/div>","protected":false},"author":218,"featured_media":431602,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[32419,32412,32411,32420],"class_list":["post-301717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-listing-agreement-clause","tag-listing-agreement-contract","tag-real-estate-listing-agreement","tag-real-estate-listing-agreement-contract"],"acf":[],"yoast_head":"<!-- This site is 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