What are the different types of listing contracts?
Once you choose your seller's agent, you will want to list your home. There are several different kinds of listing agreements:

• Open Listing. The real estate agent must find a buyer on your terms to earn a commission. If you find a buyer, or another agent finds a buyer, you do not owe a commission to your agent.



• Exclusive-Agency Listing. Your agent has an exclusive right to represent you. However, you can still find your own buyer and avoid paying a commission.



• Exclusive-Right-to-Sell Listing. You give your agent the exclusive right to sell your home. You owe your agent a commission no matter who finds the buyer, as long as it is within the listing period.

What is included in a listing agreement?
Your listing agreement with your real estate agent will cover specific information about your home. Here are the major items included in listing agreements:

• the type of listing, whether open, exclusive-agency, or exclusive-right-to-sell
• the broker's authority and responsibilities
• everyone involved in the contract, and a legal and physical description of the property
• evidence of ownership and any liens
• listing price and commission
• proposed dates for closing and buyer's possession
• real property to be taken and/or personal property to be left
• reasons to terminate the contract
• existing loans and possibility of seller financing
• current property taxes, special assessments, zoning classification
• neighborhood amenities
• required disclosures regarding agency relationship
• required disclosures regarding property condition

Obligation to pay
Even if a sale falls through, the agent is still entitled to a commission if:

• you change your mind and refuse to sell
• your spouse refuses to sign the deed
• you committed fraud in the transaction
• you are unable to deliver possession on time
• you have a mutual agreement with the buyer to cancel the sale

What should you know about an offer-to-purchase contract?
Your agent will be notify you immediately when a written offer is made. Consider the whole deal; don't focus on the price first. A lower offer from a qualified buyer who wants to close as soon as possible is more attractive than a higher offer price from an unqualified buyer who wants to close in six months.

What an Offer Means
An offer to purchase becomes a contract once you sign it, so understand what you are looking at. Ask your agent to help you evaluate the offer and determine how to respond. The following terms are included in an offer to purchase:

• complete legal description of the property
• offer price
• amount of earnest money deposit
• down payment and financing details
• closing date
• move-in date
• length of time the offer is valid
• how legal ownership is expected to transfer
• how closing costs will be apportioned
• expectations for additional provisions, such as personal property to be left, real property to be removed, and home warranties expected by the buyer

Possible contingencies

• A mortgage contingency gives the buyer time to find a mortgage commitment from a lender.



• An inspection contingency lets the buyer schedule inspections and develop a list of repairs for you to complete at your expense before closing.



• A property sale contingency protects the buyer from owning two homes at once. You are not likely to see this contingency in a seller's market.



• "Time being of the essence" is a legal term that makes the dates in the contract binding

Responding to an offer
If you are lucky enough to receive more than one offer, review them all at the same time. You can accept a contract as written or reject it completely. You may make a counter-offer that changes the original. Unless you are experienced in real estate, work closely with your real estate agent to respond to an offer. Experience is important at this step.