Whether you`re a potential real estate agent learning the basics of real estate or a potential homeowner who wants to hire a broker, it`s important to understand some of the industry jargon. Not only will it keep you informed throughout the process, but it will also help you understand your options, regardless of which page of the transaction you are on. In case of several offers, the seller can accept the offer that suits him best, even if the price is not the highest. The percentage commission is paid according to the accepted price. The seller, often in agreement with the real estate agent, may choose, for various reasons, to accept an offer lower than the highest offer, such as.B. Conditions or contingencies in the contract of sale offered or perceived differences in the financial qualification of competing buyers. A listing contract (or reference contract) is a contract between a real estate agent and a property owner that gives the broker the power to act as the owner`s broker when selling the property.  If the buyers listed by the previous broker apply to the owner within the period indicated in the hold-over part of the contract and acquire the property successfully, the owner can list an exclusive right of sale, the most used instrument. It gives the broker the exclusive right to earn a commission by representing the owners and bringing in a buyer, either by another bro. Most States require that lis tisation agreements be in writing and generally be based on standardised forms. A listing agreement is a document in which a property owner has assigned a contract with a real estate agent to find a buyer for the owner`s property.
The owner executes the listing contract in order to give a real estate agent the power to act as the owner`s broker when selling the owner`s property. However, the owner usually has to pay a commission to the real estate agent. While the seller is not limited to a price determined by an analysis of the market of the competition, or even by a formal evaluation, the broker will have little interest in selling a property at a significantly higher price. Too high a price is difficult or impossible to sell before the listing contract expires, and brokers, like most people, don`t want to work for free. Leases may also include a brokerage protection clause that entitles the broker to a commission if the property is sold to a buyer introduced by the broker within a specified period after the expiry of the listing contract.