New York State Real Estate Listing Agreement: What You Need to Know
Are you planning to sell your home in New York State? As a seller, it’s important to understand the legal aspects of a real estate transaction, including the listing agreement. A listing agreement is a contract between a property owner and a licensed real estate broker that sets out the terms and conditions for the sale of the property. In this article, we’ll discuss the key elements of a New York State real estate listing agreement.
First, it’s important to know that there are three types of listing agreements: exclusive right to sell, exclusive agency, and open listing. In an exclusive right to sell agreement, the broker is given the exclusive right to market and sell the property. In an exclusive agency agreement, the broker is given the exclusive right to market and sell the property, but the owner retains the right to sell the property themselves without paying a commission to the broker. In an open listing agreement, the owner can list the property with multiple brokers and only pay a commission to the broker who sells the property.
In New York State, the most common type of listing agreement is the exclusive right to sell agreement. This agreement typically includes the following elements:
1. Commission: The commission is the fee the broker charges for their services. In New York State, the commission is negotiable, but it’s typically between 5% to 6% of the sales price.
2. Listing period: The listing period is the length of time the agreement is in effect. In New York State, the listing period is negotiable, but it’s typically between 90 to 180 days.
3. Listing price: The listing price is the price the property will be listed for. The owner and broker will usually agree on a listing price based on the current market conditions and comparable sales in the area.
4. Marketing plan: The marketing plan is the strategy the broker will use to market the property. This may include listing the property on multiple listing services (MLS), advertising in print and online media, holding open houses, and more.
5. Termination clause: The termination clause outlines the circumstances under which the agreement can be terminated by either the owner or the broker.
It’s important to note that the listing agreement is a legally binding contract. Both the owner and the broker are bound by the terms and conditions of the agreement. As a result, it’s important to read and understand the agreement before signing it.
In summary, if you’re planning to sell your home in New York State, it’s important to have a basic understanding of the real estate listing agreement. By working with a licensed real estate broker, you can ensure that your listing agreement is legally compliant and that your interests are protected.