Listing Agreement Type Active-Exclusive Right: What You Need to Know
As a real estate agent, you are likely familiar with listing agreements. These agreements outline the terms and conditions of your relationship with a seller and the marketing of their property. One type of listing agreement you may encounter is the Active-Exclusive Right agreement.
What is an Active-Exclusive Right listing agreement?
An Active-Exclusive Right listing agreement is a contract between a seller and a real estate agent. This agreement grants the agent the exclusive right to market and sell the property for a specified period of time, typically 90-180 days. During this time, the seller is not allowed to work with any other agents or sell the property on their own.
What are the benefits of an Active-Exclusive Right listing agreement?
The main benefit of an Active-Exclusive Right listing agreement is that it gives the agent a higher level of control over the marketing and sale of the property. The agent is motivated to work harder and invest more time and resources into marketing the property, knowing that they are the only one who can earn a commission from the sale.
Additionally, an Active-Exclusive Right listing agreement can help to reduce confusion and competition among potential buyers. Because only one agent is marketing the property, buyers are more likely to work with that agent, and there is less potential for conflicts between agents.
What are the responsibilities of the agent and the seller in an Active-Exclusive Right listing agreement?
As the agent, you have a number of responsibilities under an Active-Exclusive Right listing agreement. These include:
– Setting the listing price based on your knowledge of the local market
– Creating and distributing marketing materials, such as flyers and online listings
– Holding open houses and showing the property to potential buyers
– Negotiating offers and terms of the sale on behalf of the seller
The seller also has responsibilities under an Active-Exclusive Right listing agreement. These include:
– Maintaining the property in good condition and ready for showings
– Cooperating with the agent in the marketing and sale of the property
– Informing the agent of any changes to the property or circumstances that may affect the sale
What happens if the property does not sell during the listing period?
If the property does not sell during the listing period, the seller may choose to either renew the agreement with the same agent or seek a new agent. Alternatively, the seller may choose not to relist the property at all.
In some cases, the seller may be required to pay a cancellation fee if they terminate the agreement before the end of the listing period. This fee is typically a percentage of the listing price and is outlined in the agreement.
In conclusion, an Active-Exclusive Right listing agreement is a useful tool for real estate agents and sellers alike. By granting the agent exclusive rights to market and sell the property, the agreement can help to streamline the sale process and ensure a higher level of dedication from the agent. If you are a real estate agent or seller, be sure to consider the benefits of an Active-Exclusive Right listing agreement when marketing and selling your property.
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