When listing your home there is a listing agreement between the seller and the real estate broker. This is a standard document in the state of Colorado that all real estate agents use. Below are the main items in the agreement.
1. Who the agreement is between. The sellers, broker firm and agent are defined.
2. Term of the Agreement. The time period of the listing agreement
3. Brokerage Relationship. Real estate agents can represent seller’s as a seller’s agent or a transaction broker.
Broker Duties. These reflect what the agent does on behalf of the seller which includes negotiate on the seller’s behalf, not disclose if they will take less money and why the seller is selling their home.
4. Compensation. The real estate agent only realizes a commission with a closed sale. The standard real estate commission is 6%. 3% of the total amount is offered out to a buyer’s agent or transaction broker.
5. Internet & MLS. The seller’s home will be posted in the MLS and on-line in other real estate related sites, to include the property address and photos.
6. Seller obligations. The seller will negotiate and communicate through the listing agent.
7. Price and terms. The listing price and loan terms the seller is willing to accept. Only the listing agent and the seller see this document, this is not information that the buyer is able to view.
8. Earnest money. The amount of earnest money being requested
9. Seller proceeds. How the seller would like to receive their proceeds, either funds wired or a cashier’s check
10. Inclusions and exclusions. What items are included and excluded with the sale of the home are defined
11. Title and encumbrances. Title is typically transferred via General Warranty Deed. All liens on the home are paid off at closing.
12. Home owner’s association. The fees and general information of what they cover.
13. Disclosures. The broker must disclose all adverse material defects that he/she knows about the property. The seller agrees to fill out a seller’s property disclosure about the home, to the best of their knowledge.
14. Nondiscrimination. The broker is not able to discriminate against any parties
15. Mediation. All parties agree to mediation and the loser pays the attorney fees.
16. Physical delivery. When the agent has notice, the seller has notice
17. Choice of law. All parties agree Colorado law
18. Agreement. A copy of the entire agreement will be given to the seller