What You Need To Know About Listing Agreements

When you decide to sell an apartment in New York City, it’s common practice to sign an exclusive listing agreement with a broker. The contract, which typically runs six months or longer, spells out exactly how your apartment will be marketed, what access your broker will have to your place (and when), and how much your agent will be paid for her services. Here are six basic terms you need to know.

Commission

A percentage of the sale price, defined in the listing agreement, that is paid to the agent by the seller at the closing table.

Exclusivity

An exclusive agreement will spell out the terms of the contract and state that your agent now has the sole right to sell your property for the duration of the agreement. That means the commission will be paid even if you find a buyer yourself.

Marketing

When signing an exclusive listing agreement, it’s important to discuss how the apartment will be staged and advertised, how showings will be handled, and when open houses will take place.

Protection Clause

For any exclusive agreement, this piece of the contract protects the seller’s interests. It also protects the agent or broker (and guarantees his or her commission) for a certain period of time after the expiration date. This is important, for example, if a prospective buyer brought in by the agent during the agreement period reappears and makes an offer after the agreement has expired.

Timing

Most exclusive agreements run for a term of six months. If your apartment hasn’t sold by the end of that period, it’s time to have a sit-down with your agent to discuss fresh strategies (and, perhaps, revised pricing). From there, you can re-up the agreement or decide to part ways.