What is meant by a "listing agreement?"

When you put your home up for sale, it's called "listing" because your agent lists the property on the open market or in the Multiple Listing Service to expose your home to the widest range of buyers. To do this, you employ the agent to market your home by signing a contract. This listing agreement is signed at a listing appointment. The agreement contains:

- A complete description of your property.
- The price you're asking.
- An indication of the financing terms you will accept.
- The brokerage fee.
- The length of time the agreement is to be in effect.

When you sign the listing contract, you may agree to give your agent the "exclusive right to sell" your home for a certain listing period, at the end of which you may extend or terminate the agreement, depending on your satisfaction with your agent's efforts to sell.

You may agree to allow your agent to put a "For Sale" sign on your lawn, to run ads in newspapers and magazines, to send out direct mail brochures and to make the property readily accessible so that other agents in the Multiple Listing Service can show your home if you're away.

Your agent should agree to actively market your home, list your property in the Multiple Listing Service if there is one in your area and to keep on top of all aspects of getting to settlement or closing, including appraisal, loan approval, termite inspection, etc.

M.L.S. (Multiple Listing Service) - A network that contains listings of all area homes on the market by members of the MLS. All area members of MLS have access to the regularly updated information.