When Does a Listing Agreement Expire? A Guide for Home Sellers
Selling a home can be a complicated and stressful process, and one of the most important steps is signing a listing agreement with a real estate agent. This agreement sets out the terms of the agent`s representation and outlines the responsibilities of both the seller and the agent. But what happens when the agreement comes to an end? In this article, we`ll explore when a listing agreement expires and what it means for home sellers.
Understanding the Types of Listing Agreements
Before we dive into the specifics of expiration dates, it`s important to understand the different types of listing agreements. There are three main types:
1. Exclusive Right-to-Sell: This is the most common type of listing agreement, in which the agent has the exclusive right to sell the property for a specified period of time. This means that if the home sells during the listing period – even if the seller finds the buyer independently – the agent is entitled to the commission.
2. Exclusive Agency: This type of agreement is less common, but it still gives the agent exclusive rights to sell the property. However, if the seller finds the buyer independently, no commission is owed.
3. Open Listing: This type of agreement allows the seller to work with multiple agents simultaneously, and the agent who brings the buyer to the table is entitled to the commission.
Expiration Dates for Listing Agreements
Now that we understand the different types of listing agreements, let`s look at when they typically expire. The length of the listing period is negotiable between the seller and the agent, but there are some general guidelines:
– Exclusive Right-to-Sell: These agreements typically range from 90 days to six months, although they can be longer or shorter depending on the market and the property.
– Exclusive Agency: These agreements are often shorter than exclusive right-to-sell agreements, typically ranging from 30 to 90 days.
– Open Listing: Because the seller can work with multiple agents, there is no set expiration date for these agreements.
Once the listing agreement has expired, the seller is no longer bound to work exclusively with that agent. However, if the home sells to a buyer who was introduced to the property during the listing period, the original agent may still be entitled to the commission, depending on the terms of the agreement.
Renewing or Extending the Listing Agreement
If the home hasn`t sold by the time the listing agreement expires, the seller and agent can choose to renew or extend the agreement. This can be done by signing a new agreement with a new expiration date, or by adding an addendum to the existing agreement that extends the listing period.
It`s important for sellers to carefully consider whether they want to renew or extend the agreement with their current agent. If they`re unhappy with the agent`s performance or have concerns about their ability to sell the home, it may be time to look for a new agent.
In conclusion, understanding when a listing agreement expires and what it means for home sellers is an important part of the selling process. By knowing the different types of agreements and typical expiration dates, sellers can make informed decisions about working with agents and selling their homes.
