When it is time to place your home on the market you are required to enter into an agency agreement.
This document outlines what the duties the agent will perform, the type of marketing along with the costs of such marketing. It will also detail the agent’s selling fee and under what conditions they are entitled to receive payment.
Your agency agreement is an important part of placing your property on the market. It details your agreement with the agent as to fees and duties. It is important to understand exactly what you are signing.
There are three main types of agency agreements.
Exclusive Agency: This type of agency grants your selected agent exclusive marketing rights to your property for a designated period of time. The agent is entitled to a fee should they (or anyone else) introduce a buyer within that period of time.
Sole Agency: Similar to an exclusive agency however the vendor can personally sell the property without paying an agent’s fee.
Open Agency: Rarely used these days but none the less still available. This grants an agent authority to sell your property. You can enter into this type of agency with any number of agents and pay the fee to the agent that sells your property. Quality agents rarely (if at all) accept this type of agency for a variety of reasons, the main being that they have other listings that have granted exclusive agency to them and, as such, feel an obligation to market and work those listings.
For a copy of a listing agreement (PAMD Form 22A) contact us today.