What is a Florida Listing Agreement?
Before you can understand Florida listing agreement PDFs, it is important to know just what the term listing agreement means. A Florida listing agreement is a contract or agreement between a real estate agent and a seller that outlines the way the sale of the property will be handled. Unlike other types of contracts, this document usually is not binding because it is somewhat open to interpretation. It is one of those documents which most frequently are altered when parties adopt the terms of, for example, a purchase and sale contract.
The listing agreement is important because it defines the relationship between the real estate agent and the seller. The listing agreement lists the responsibilities of both the seller and the real estate agent . Many define the bases for fees, payments, and commissions. Some specify a certain length of time, during which the real estate agent is the representative of the seller in the sale of the property. The contract can be used to grant permissions to the real estate agent to act on behalf of the seller (while of course, keeping the seller appraised at all times).
In many cases, the listing agreement is fairly standard. It may also outline fees and commissions based on amounts, or a percentage of the sales. Since it is a fairly standard agreement, it should not be written in a way that states that the seller does not have to pay the total amount of the fees and commissions.
Types of Florida Listing Agreements
The types of Florida listing agreements
Listed below are the types of listing agreements available in the State of Florida. Note that Paragraph 10 of the Joint Transaction Disclosures lays out all of the listing agreement representation and relationship disclosures. Most licensees fill out and provide MLS required forms with the listing agreement.
Exclusive Right to Sell Listing Agreement:
This is the most common form of listing agreement. Under the terms of such an agreement, the broker receives a commission no matter who sells the property as long as the listing is active. Even if the seller sells the property, the broker would still receive a commission under these terms. This is an exclusive listing agreement which should grant the listed property to the broker for sale. The broker must be registered and maintain a license in order to sell real estate. The purpose of this type of agreement is to provide legal recourse when participation in an MLS and/or other advertising does not result in the sale of property. The seller will pay the compensation agreed upon to the broker.
Exclusive Agency Listing Agreement:
If the broker does not sell the property, under an exclusive agency listing agreement the seller will not have to compensate the broker.
Open Listing Agreement:
The seller is free to sell the property without owing a commission to the broker. This type of listing is usually an oral "handshake" type of arrangement.
Essential Components of a Florida Listing Agreement PDF
A Florida listing agreement PDF must contain several key elements in order to be legal and enforceable. Here are the components you should pay attention to when drafting a listing agreement:
Listing Price:
The listing price of a home is the price for which the home will be offered for sale. This can be the most important part of a listing agreement because it sets the expectations for the seller, the agent, and any potential buyers. While you may need the assistance of a real estate professional to set the right price for your home, it’s important that this section is accurate and clearly stated on the listing agreement as it can have serious ramifications later in the sales process.
Commission:
The seller and the listing agent should agree to the commission amount upfront in the listing agreement so there are no surprises later on. The typical real estate commission fee is 5-7% of the sale price. The seller will usually pay a fee to the listing agent and the buyer agent. For instance, if the fee is 5% of the selling price, the listing agent would receive 2.5% of the selling price, and the buyer agent would receive the other 2.5%.
Property Description:
Of course all listing agreements must include a description of the property. This information should include the property type and any other details such as the number of bedrooms and bathrooms, square footage, and other amenities. Also, if there are any specific disclosures to be made, they should be included in the property description section or included as an addendum attachment.
Duration of Agreement:
Most listing agreements are in effect for a specific amount of time. The duration of the real estate listing agreement states how long the contract will be in effect and the period of time during which the listing agent will receive commission if the house sells. A listing agreement that expires before the house sells will not be able to satisfy commission requirements.
An expired listing agreement does not release the seller from paying commission if they sell the property without a licensed agent involved. However, one situation in which the seller will not have to pay commission to the listing agent is when the listing agent was not acting as an agent for the seller during the contract.
Advantages of Using a Listing Agreement PDF
The world is going digital and the legal community is no exception. Standardized forms in Florida are now readily accessible online. The Florida Bar has made many documents easy to find for its members and the Florida Department of State is maintaining a growing selection. This means accessibility for the public, attorneys, paralegals, even Realtors and other professionals looking for standardized documentation to share between each other and their clients. For optimum ease of use for everyone involved, many choose to use PDF as the preferred file format , since the documents can be created that way easily and since the format is so widespread and interoperable across platforms. This makes it a natural choice for standardized documentation, especially in an environment where you have different parties using different types of devices. It should be noted that when creating PDFs, it is important to verify that the finished product looks as expected, especially if the file was created by converting a Word document since there may be slight differences between versions of applications and/or the platform being used.
Legal Implications and Compliance Issues
When it comes to real estate transactions in Florida, a listing agreement is a crucial component for any seller. This document outlines the responsibilities and rights of both the seller and the real estate agent, making it essential for facilitating a smooth sales process. To ensure that your listing agreement satisfies all legal requirements specific to Florida, consulting with a lawyer is not just advised but necessary.
A listing agreement falls under the category of Contracts and Sales, and therefore, it is crucial that the contract complies with Florida regulations. Any omissions or errors can lead to potential legal ramifications for both the seller and the agent. To safeguard your interests, it is advisable to have a Florida real estate attorney review your listing agreement before you sign anything.
One essential aspect of the listing agreement is the Scope of Services. This includes everything from how the real estate agent will market the property to the timeframe in which the property will be sold. Other essential components include compensation requirements, designating whether the agent has the exclusive right to sell the property, and a provision for an automatic extension of the listing period.
Another area of compliance concerns the MLS and commission split agreements. Particularly for Realtors, listing agreements may require compliance with the MLS (Multiple Listing Service), which maintains a list of properties for sale across different states. In addition, many listing agreements contain information related to a commission split that may occur if the buyer is also using a real estate agent. Although these sections are not part of the Listing Agreement pdf, they are still essential to ensure the real estate transaction proceeds without difficulty.
Given the complexity involved in a listing agreement, and the potential consequences that may arise from missteps, a Florida real estate lawyer is indispensable. Only by identifying defects in the listing agreement can a seller minimize liability against his or her real estate agent or broker.
Where to Get Florida Listing Agreement PDF Templates
Florida listing agreements are not a document that most people will need to regularly generate, so it makes sense to turn to trusted resources to obtain them. One of the options is the National Association of Realtors, which has a variety of downloadable forms and other items at the following website: http://www.realtor.org/leadership/secretary-treasurers-network/new-member-application?navid=2&rtp=4&no=1
Forms are available for multiple states at the site, including Florida.
Your next choice, if you are looking for Florida listing agreement PDF templates, would be to go to the Florida Association of Realtors guide at http://floridarealtors.org/Orgs/Forms/index.cfm and then view a PDF of the form . There is both a single agency listing agreement and a transaction brokerage listing agreement available, both of which are thorough and do the job well.
Note that in Florida, real estate laws do not require an exclusive listing agreement to be used, and recommend using it if you wish to distinguish yourself from your competition and receive the maximum permitted commission. Many listing agents will have their clients sign one as a matter of cause, and it doesn’t hurt to recommend one to your clients if you have a good reputation.
Of course, always make sure to check on the current law if you are going to use a listing agreement to bring the sale home. This is one area that changes often, and while a PDF for a listing agreement is easy to find, information about how the listing agreement is best used is a bit more elusive.