The Florida Listing Agreement is a legal document that establishes a formal relationship between a seller and a broker for the sale of real estate. This agreement grants the broker the exclusive right to sell the property under specified terms and conditions. Understanding this form is crucial for anyone looking to navigate the real estate market in Florida effectively.
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The Florida Listing Agreement form serves as a crucial document in the real estate process, establishing a formal relationship between the seller and the broker. This agreement grants the broker the exclusive right to sell the property, detailing the terms, price, and duration of the listing. Within the form, sellers must provide a comprehensive description of the property, including its address and any personal property included in the sale. The agreement also outlines the pricing structure, financing options, and seller expenses, ensuring transparency in the transaction. Brokers are tasked with diligent marketing efforts, often utilizing multiple listing services (MLS) to maximize exposure to potential buyers. Additionally, the form specifies the obligations of both parties, including the seller’s responsibility to cooperate and provide necessary access to the property. Notably, it addresses compensation for the broker, detailing the fees associated with various scenarios, such as lease agreements or options. By clearly defining these elements, the Florida Listing Agreement form aims to protect the interests of both the seller and the broker while facilitating a smooth sales process.
Exclusive Right of Sale Listing Agreement
1This Exclusive Right of Sale Listing Agreement (“Agreement”) is between
2 ("Seller")
3 and
("Broker").
41. Authority to Sell Property: Seller gives Broker the EXCLUSIVE RIGHT TO SELL the real and personal
5property (collectively “Property”) described below, at the price and terms described below, beginning
6 ____________________ and terminating at 11:59 p.m. on ____________________ (“Termination Date”). Upon
7full execution of a contract for sale and purchase of the Property, all rights and obligations of this Agreement will
8automatically extend through the date of the actual closing of the sales contract. Seller and Broker acknowledge
9that this Agreement does not guarantee a sale. This Property will be offered to any person without regard to race,
10color, religion, sex, handicap, familial status, national origin, or any other factor protected by federal, state, or local
11law. Seller certifies and represents that she/he/it is legally entitled to convey the Property and all improvements.
122. Description of Property:
13
(a) Street Address:
14
15
Legal Description:
16
____________________________________________________
See Attachment
17
(b) Personal Property, including appliances:
18
19(c) Occupancy:
20
Property
is
is not currently occupied by a tenant. If occupied, the lease term expires ______________.
213. Price and Terms: The property is offered for sale on the following terms or on other terms acceptable to Seller:
22
(a)
Price: $
____________________
23
(d)
Financing
Terms:
Cash
Conventional
VA
FHA
Other (specify)
in the amount
Seller Financing: Seller will hold a purchase money mortgage
24
of $
25
with the following terms:
26
Assumption of Existing
Mortgage: Buyer may assume existing mortgage for $
___________________
plus
27
an assumption fee of $____________________. The mortgage is for a term of
______ years beginning in
28
, at an interest
rate of
%
fixed
variable (describe)
.
______
_____________________________
29
Lender
approval of assumption
required
is not required
unknown. Notice to Seller: (1) You may
30remain liable for an assumed mortgage for a number of years after the Property is sold. Check with your
31lender to determine the extent of your liability. Seller will ensure that all mortgage payments and required
32escrow deposits are current at the time of closing and will convey the escrow deposit to the buyer at closing.
33(2) Extensive regulations affect Seller financed transactions. It is beyond the scope of a real estate licensee’s
34authority to determine whether the terms of your Seller financing agreement comply with all applicable laws or
35whether you must be registered and/or licensed as a loan originator before offering Seller financing. You are
36advised to consult with a legal or mortgage professional to make this determination.
37 (e) Seller Expenses: Seller will pay mortgage discount or other closing costs not to exceed ______% of the
38purchase price and any other expenses Seller agrees to pay in connection with a transaction.
394. Broker Obligations: Broker agrees to make diligent and continued efforts to sell the Property in accordance with
40this Agreement until a sales contract is pending on the Property.
415. Multiple Listing Service: Placing the Property in a multiple listing service (the “MLS”) is beneficial to Seller
42because the Property will be exposed to a large number of potential buyers. As a MLS participant, Broker is
43obligated to enter the Property into the MLS within one (1) business day of marketing the Property to the public
44(see Paragraph 6(a)) or as necessary to comply with local MLS rule(s). This listing will be published accordingly in
45the MLS unless Seller directs Broker otherwise in writing. (See paragraph 6(b)(i)). Seller authorizes Broker to
46report to the MLS this listing information and price, terms, and financing information on any resulting sale for use
47by authorized Board / Association members and MLS participants and subscribers unless Seller directs Broker
48otherwise in writing.
Seller (_____) (_____) and Broker/Sales Associate (_____) (_____) acknowledge receipt of a copy of this page, which is Page 1 of 4.
ERS-18tb Rev 5/20
© 2020 Florida Realtors®
496. Broker Authority: Seller authorizes Broker to:
50(a) Market the Property to the Public (unless limited in Paragraph 6(b)(i) below):
51(i) Public marketing includes, but is not limited to, flyers, yard signs, digital marketing on public facing
52
websites, brokerage website displays (i.e. IDX or VOW), email blasts, multi-brokerage listing sharing
53
networks and applications available to the general public.
54(ii) Public marketing also includes marketing the Property to real estate agents outside Broker’s
55office.
56(iii) Place appropriate transaction signs on the Property, except if Paragraph 6(b)(i) is checked below.
57(iv) Use Seller’s name in connection with marketing or advertising the Property.
58
Display the Property on the Internet except the street address.
59(b) Not Publicly Market to the Public/Seller Opt-Out:
60
(i.)
Seller does not authorize Broker to display the Property on the MLS.
61(ii.) Seller understands and acknowledges that if Seller checks option 6(b)(i), a For Sale sign will not be
62placed upon the Property and
63(iii.) Seller understands and acknowledges that if Seller checks option 6(b)(i), Broker will be limited to
64marketing the Property only to agents within Broker’s office.
65________/__________ Initials of Seller
66(c) Obtain information relating to the present mortgage(s) on the Property.
67(d) Provide objective comparative market analysis information to potential buyers.
68
(e) (Check if applicable)
Use a lock box system to show and access the Property. A lock box does not
69ensure the Property’s security. Seller is advised to secure or remove valuables. Seller agrees that the lock
70box is for Seller’s benefit and releases Broker, persons working through Broker, and Broker’s local Realtor
71Board / Association from all liability and responsibility in connection with any damage or loss that occurs.
72
Withhold verbal offers.
Withhold all offers once Seller accepts a sales contract for the Property.
73(f) Act as a transaction broker.
74(g) Virtual Office Websites: Some real estate brokerages offer real estate brokerage services online. These
75websites are referred to as Virtual Office Websites (“VOWs”). An automated estimate of market value or
76reviews and comments about a property may be displayed in conjunction with a property on some VOWs.
77Anyone who registers on a VOW may gain access to such automated valuations or comments and reviews
78about any property displayed on a VOW. Unless limited below, a VOW may display automated valuations or
79comments and reviews about this Property.
80
Seller does not authorize an automated estimate of the market value of the listing (or a hyperlink to such
81estimate) to be displayed in immediate conjunction with the listing of this Property.
82
Seller does not authorize third parties to write comments or reviews about the listing of the Property (or
83display a hyperlink to such comments or reviews) in immediate conjunction with the listing of this Property.
847. Seller Obligations: In consideration of Broker’s obligations, Seller agrees to:
85(a) Cooperate with Broker in carrying out the purpose of this Agreement, including referring immediately to
86Broker all inquiries regarding the Property’s transfer, whether by purchase or any other means of transfer.
87(b) Recognize Broker may be subject to additional MLS obligations and potential penalties for failure to comply
88with them.
89(c) Provide Broker with keys to the Property and make the Property available for Broker to show during
90reasonable times.
91(d) Inform Broker before leasing, mortgaging, or otherwise encumbering the Property.
92(e) Indemnify Broker and hold Broker harmless from losses, damages, costs, and expenses of any nature,
93including attorney’s fees, and from liability to any person, that Broker incurs because of (1) Seller’s
94negligence, representations, misrepresentations, actions, or inactions; (2) the use of a lock box; (3) the
95existence of undisclosed material facts about the Property; or (4) a court or arbitration decision that a broker
96who was not compensated in connection with a transaction is entitled to compensation from Broker. This
97clause will survive Broker’s performance and the transfer of title.
98(f) Perform any act reasonably necessary to comply with FIRPTA (Section 1445 of the Internal Revenue Code).
99(g) Make all legally required disclosures, including all facts that materially affect the Property’s value and are not
100readily observable or known by the buyer. Seller certifies and represents that Seller knows of no such
101material facts (local government building code violations, unobservable defects, etc.) other than the following:
102
______________________________________________________________________________________
103Seller will immediately inform Broker of any material facts that arise after signing this Agreement.
104(h) Consult appropriate professionals for related legal, tax, property condition, environmental, foreign reporting
105requirements, and other specialized advice.
Seller (_____) (_____) and Broker/Sales Associate (_____) (_____) acknowledge receipt of a copy of this page, which is Page 2 of 4.
1068. Compensation: Seller will compensate Broker as specified below for procuring a buyer who is ready, willing,
107and able to purchase the Property or any interest in the Property on the terms of this Agreement or on any other
108terms acceptable to Seller. Seller will pay Broker as follows (plus applicable sales tax):
109 (a) __________% of the total purchase price plus $____________________ OR $____________________, no
110later than the date of closing specified in the sales contract. However, closing is not a prerequisite for Broker’s
111fee being earned.
112 (b) __________ ($ or %) of the consideration paid for an option, at the time an option is created. If the option is
113exercised, Seller will pay Broker the Paragraph 8(a) fee, less the amount Broker received under this
114subparagraph.
115 (c) __________ ($ or %) of gross lease value as a leasing fee, on the date Seller enters into a lease or
116agreement to lease, whichever is earlier. This fee is not due if the Property is or becomes the subject of a
117contract granting an exclusive right to lease the Property.
118(d) Broker’s fee is due in the following circumstances: (1) If any interest in the Property is transferred, whether by
119sale, lease, exchange, governmental action, bankruptcy, or any other means of transfer, regardless of whether
120the buyer is secured by Seller, Broker, or any other person. (2) If Seller refuses or fails to sign an offer at the
121price and terms stated in this Agreement, defaults on an executed sales contract, or agrees with a buyer to
122
cancel an executed sales contract. (3) If, within ______ days after Termination Date (“Protection Period”),
123Seller transfers or contracts to transfer the Property or any interest in the Property to any prospects with whom
124Seller, Broker, or any real estate licensee communicated regarding the Property before Termination Date.
125However, no fee will be due Broker if the Property is relisted after Termination Date and sold through another
126broker.
127 (e) Retained Deposits: As consideration for Broker’s services, Broker is entitled to receive ______% (50% if
128left blank) of all deposits that Seller retains as liquidated damages for a buyer’s default in a transaction, not to
129exceed the Paragraph 8(a) fee.
1309. Cooperation with and Compensation to Other Brokers: Notice to Seller: The buyer’s broker, even if
131compensated by Seller or Broker, may represent the interests of the buyer. Broker’s office policy is to cooperate
132with all other brokers except when not in Seller’s best interest and to offer compensation in the amount of
133
% of the purchase price or $
to a single agent for the buyer;
% of the
_______________
134
purchase
price or $_______________ to a transaction broker for the buyer; and
______% of the purchase
price or $
to a broker who has no brokerage relationship with
buyer.
135
the
136
None
of the above. (If this
is checked, the Property cannot be placed in the MLS.)
13710. Brokerage Relationship: Broker will act as a transaction broker. Broker will deal honestly and fairly; will account
138for all funds; will use skill, care, and diligence in the transaction; will disclose all known facts that materially affect
139the value of the residential property which are not readily observable to the buyer; will present all offers and
140counteroffers in a timely manner unless directed otherwise in writing; and will have limited confidentiality with
141Seller unless waived in writing.
14211. Conditional Termination: At Seller’s request, Broker may agree to conditionally terminate this Agreement. If
143Broker agrees to conditional termination, Seller must sign a withdrawal agreement, reimburse Broker for all direct
144 expenses incurred in marketing the Property, and pay a cancellation fee of $____________________ plus
145applicable sales tax. Broker may void the conditional termination, and Seller will pay the fee stated in Paragraph
1468(a) less the cancellation fee if Seller transfers or contracts to transfer the Property or any interest in the Property
147during the time period from the date of conditional termination to Termination Date and Protection Period, if
148applicable.
14912. Dispute Resolution: This Agreement will be construed under Florida law. All controversies, claims, and other
150matters in question between the parties arising out of or relating to this Agreement or the breach thereof will be
151settled by first attempting mediation under the rules of the American Mediation Association or other mediator
152agreed upon by the parties. If litigation arises out of this Agreement, the prevailing party will be entitled to recover
153reasonable attorney’s fees and costs, unless the parties agree that disputes will be settled by arbitration as follows:
Arbitration: By initialing in the space provided, Seller
154
(____)
(____), Sales Associate (____), and Broker (____)
155agree that disputes not resolved by mediation will be settled by neutral binding arbitration in the county in which
156the Property is located in accordance with the rules of the American Arbitration Association or other arbitrator
157agreed upon by the parties. Each party to any arbitration (or litigation to enforce the arbitration provision of this
158Agreement or an arbitration award) will pay its own fees, costs, and expenses, including attorney’s fees, and will
159equally split the arbitrator’s fees and administrative fees of arbitration.
16013. Miscellaneous: This Agreement is binding on Seller’s and Broker’s heirs, personal representatives,
161administrators, successors, and assigns. Broker may assign this Agreement to another listing office. This
Seller (_____) (_____) and Broker/Sales Associate (_____) (_____) acknowledge receipt of a copy of this page, which is Page 3 of 4.
162Agreement is the entire agreement between Seller and Broker. No prior or present agreements or representations
163will be binding on Seller or Broker unless included in this Agreement. Electronic signatures are acceptable and
164will be binding. Signatures, initials, and modifications communicated by facsimile will be considered as originals.
165The term “buyer” as used in this Agreement includes buyers, tenants, exchangors, optionees, and other categories
166of potential or actual transferees.
167 14. Additional Terms: __________________________________________________________________________
168______________________________________________________________________________________________
169______________________________________________________________________________________________
170______________________________________________________________________________________________
171______________________________________________________________________________________________
172______________________________________________________________________________________________
173______________________________________________________________________________________________
174______________________________________________________________________________________________
175______________________________________________________________________________________________
176______________________________________________________________________________________________
177______________________________________________________________________________________________
178______________________________________________________________________________________________
179______________________________________________________________________________________________
180
Seller’s Signature:
Date:
_______________________
181
Home Telephone:
Work Telephone:
Facsimile: ___________________
182
Address:
183
Email Address:
184
Date: _______________________
Facsimile:
185
186
187
Authorized Sales Associate or Broker:
_______________________________
188
Brokerage Firm Name:
Telephone:
189
_____________________________________________
190
191
Copy returned to Seller on
by
email
facsimile
mail
personal delivery.
_____________________
Florida REALTORS® makes no representation as to the legal validity or adequacy of any provision of this form in any specific transaction. This standardized form should not be used in complex transactions or with extensive riders or additions. This form is available for use by the entire real estate industry and is not intended to identify the user as REALTOR®. REALTOR® is a registered collective membership mark which may be used only be real estate licensees who are members of the NATIONAL ASSOICATION OF REALTORS® and who subscribe to its Code of Ethics. The copyright laws of United States (17 U.S. Code) forbid the unauthorized reproduction of this form by any means including facsimile or computerized forms.
Seller (_____) (_____) and Broker/Sales Associate (_____) (_____) acknowledge receipt of a copy of this page, which is Page 4 of 4.
Completing the Florida Listing Agreement form is a crucial step in the process of selling a property. This form outlines the terms of the agreement between the seller and the broker. After filling out this form, the next steps will involve marketing the property and potentially receiving offers from interested buyers.
What is the Florida Listing Agreement form?
The Florida Listing Agreement form is a legal document that establishes a partnership between a seller and a broker. It grants the broker the exclusive right to sell the property specified in the agreement. This form outlines the terms of the sale, including the property description, price, and obligations of both the seller and the broker.
What does "Exclusive Right to Sell" mean?
When a seller grants the broker an "Exclusive Right to Sell," it means that the broker has the sole authority to market and sell the property. Even if the seller finds a buyer independently, the broker is still entitled to their commission. This arrangement is beneficial as it encourages the broker to invest time and resources into marketing the property effectively.
How long does the listing agreement last?
The duration of the listing agreement is specified within the document. It begins on a designated start date and terminates at 11:59 p.m. on a specified termination date. Should a contract for sale and purchase be executed, the agreement automatically extends through the closing date of that contract.
What happens if the property sells before the agreement expires?
If the property sells before the listing agreement expires, the broker is entitled to their commission as outlined in the agreement. The seller and broker have agreed on the terms of compensation, which may include a percentage of the sale price or a flat fee.
Can the seller terminate the agreement early?
Yes, the seller can request to terminate the agreement early. However, this typically requires a conditional termination process. The seller may need to sign a withdrawal agreement and reimburse the broker for any direct marketing expenses incurred. A cancellation fee may also apply.
What are the seller's obligations under this agreement?
The seller has several important obligations, including cooperating with the broker, providing access to the property for showings, and informing the broker of any inquiries regarding the property. The seller must also disclose any material facts that could affect the property's value and consult professionals for legal or tax advice as needed.
What is the Multiple Listing Service (MLS)?
The MLS is a database used by real estate professionals to share property listings. By including the property in the MLS, the broker can expose it to a wider audience of potential buyers. The broker is required to enter the property into the MLS within one business day of marketing it to the public unless the seller directs otherwise.
What if the seller wants to limit the broker's marketing efforts?
If the seller prefers not to have the property listed in the MLS or wants to limit the broker's marketing, they can opt-out by indicating this in the agreement. However, this may restrict the property's exposure to potential buyers and limit the broker's ability to market effectively.
What should the seller do if they receive an offer?
Upon receiving an offer, the seller should refer it immediately to the broker. The broker is responsible for presenting all offers and counteroffers in a timely manner. The seller can then decide whether to accept, reject, or counter the offer based on the broker's advice.
What are the consequences of not complying with the agreement?
If the seller fails to comply with the terms of the agreement, they may face potential penalties, including the obligation to pay the broker's commission even if they do not complete the sale. Additionally, the broker may be entitled to compensation for any losses incurred due to the seller's non-compliance.
Filling out the Florida Listing Agreement form can be straightforward, but many people make common mistakes that can lead to complications later. One frequent error is failing to complete the property description accurately. It’s essential to provide the correct street address and legal description. Missing or incorrect details can create confusion and may delay the selling process.
Another mistake involves the price and terms section. Sellers often neglect to specify a clear asking price or financing terms. Leaving these fields blank can lead to misunderstandings with potential buyers and may affect the overall marketing strategy.
Some sellers overlook the importance of occupancy information. It's crucial to indicate whether the property is currently occupied and, if so, the lease terms. This information helps potential buyers understand the situation better and can influence their decision-making process.
Additionally, many people fail to recognize the significance of broker obligations. The agreement outlines the broker's responsibilities, and understanding these can help sellers know what to expect. Not reviewing this section can lead to unmet expectations during the selling process.
Another common oversight is in the multiple listing service (MLS) section. Sellers sometimes do not authorize their broker to list the property in the MLS, which can severely limit exposure to potential buyers. This decision should be made carefully, as it can impact the sale significantly.
In terms of seller obligations, many sellers do not fully grasp their responsibilities. They may forget to provide keys for showings or fail to inform the broker of any changes regarding the property. Keeping communication open is vital for a smooth transaction.
Another mistake is miscalculating compensation for the broker. Sellers should clearly outline how much they will pay the broker and under what circumstances. Failing to do this can lead to disputes later on, especially if there are misunderstandings about fees.
Finally, many sellers neglect to consult with legal professionals when filling out the agreement. While the form is designed for use by the general public, seeking legal advice can help clarify any uncertainties and ensure that all aspects of the agreement are understood. This can prevent future complications and protect the seller’s interests.
The Florida Listing Agreement is a crucial document in the real estate process, outlining the relationship between a seller and a broker. Along with this agreement, several other forms and documents are often utilized to ensure a smooth transaction. Below is a list of common documents that accompany the Florida Listing Agreement, each serving a specific purpose.
Understanding these documents can greatly enhance the experience of selling a property in Florida. Each form plays a vital role in the transaction, contributing to clarity and efficiency throughout the process. By being informed, sellers can navigate their real estate journey with confidence.
When filling out the Florida Listing Agreement form, it's essential to approach the process carefully. Here’s a list of things you should and shouldn't do:
By following these guidelines, you can help ensure a smoother transaction process. Remember, this agreement is a crucial step in selling your property.
Many people mistakenly believe that signing the Florida Listing Agreement ensures their property will sell. In reality, while this agreement gives the broker exclusive rights to market the property, it does not guarantee a sale will occur.
Some sellers think that once they sign the agreement, they can sit back and relax. However, sellers have responsibilities, including cooperating with the broker, providing access to the property, and disclosing any material facts about the property.
It’s a common belief that brokers can make decisions about the sale without consulting the seller. In fact, brokers must act in the best interest of the seller and cannot finalize any transactions without the seller's approval.
Some sellers think that once they sell their property, they are free from any mortgage obligations. However, if a buyer assumes the mortgage, the seller may still be liable, depending on the terms of the mortgage agreement.
Many assume that the Florida Listing Agreement is the same for every property. In reality, each agreement can be tailored to fit the specific needs and circumstances of the seller and the property.
While sellers can choose not to list their property in the Multiple Listing Service (MLS), they should understand that this decision can limit exposure to potential buyers and may affect the overall sale price.
Some sellers believe they can avoid paying commissions altogether. While commissions can be negotiated, it’s important to recognize that brokers typically earn their fees based on the sale of the property, and bypassing this can lead to a lack of representation and support.
Understanding the Florida Listing Agreement form is crucial for both sellers and brokers involved in real estate transactions. Here are some key takeaways: