Listing contract

A listing contract, is a contract between a real estate broker (or agent representatives, acting in the broker's name) and a seller or sellers of real property, to give the broker the right to offer property for sale.

Types of listing contracts

Exclusive right to sell - The seller must pay the brokerage a commission if, by the expiration date in the listing contract, the real estate is sold, regardless of whether the buyer is obtained through the agency or not. Even if the seller finds the buyer him/herself, a commission is still owed to the brokerage.
In the USA Brokers who are REALTORS (members of NAR) are obliged to enter a property into the local MLS system and offer compensation to co-operating brokers.
Exclusive Agency - The seller can only list property with one brokerage until listing contract expires with property unsold. The seller must pay a broker a commission if the real estate is sold to a buyer obtained through that brokerage. By agreement, if the seller finds a buyer him/herself, the seller does not have to pay a commission. Since there will be no co operating broker involved, the property will not be listed in MLS.
Open Agency - A seller can enter into an agreement to sell property with more than one brokerage in open agency listings. The seller must pay a commission only to the brokerage which brings the buyer for the real estate.

The contract is often referred to as a listing agreement and; if the broker is a member of the National Association of Realtors; it must include terms such as: beginning date and a termination date; list price; compensation offered to the broker, terms and conditions under which the brokerage fee shall be paid by seller; authorizes broker to co operate with other brokers as sub-agents or buyer's agents and details the compensation to be offered to those brokers in the event they procure a buyer; authorizes broker to reveal or not to reveal the existence of offers;

Typically, separate listing agreements exist for the sale of residential property, for land, and for commercial or business property.

Upon listing the property, the real estate agency tries to obtain a buyer for the property and, in consideration of successfully finding a satisfactory buyer, the broker anticipates receiving a commission (fee) for the services the brokerage provided.

Payment of a commission or fee
Although the terms of the contract could vary, usually the payment of a commission (or fee) to the brokerage is contingent upon:

the successful negotiation of a purchase contract between a satisfactory buyer and seller and the subsequent ability and willingness of the buyer to close the deal, or
finding a satisfactory buyer who is ready, willing, and able to pay the full listing price (or more) for the real estate for sale without any contingencies.

Listing price and final contract price
The listing contract typically also includes a listing price for the property and an expiration date by which the contract expires.

Expiration date
Listing a property commonly incurs certain expenses for the listing broker and takes some time

http://www.realtor.com The National Association of Realtors (NAR), whose members are known as Realtors, is North America's largest trade association,

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