Types of Listing Contracts
Exclusive Right to Sell (ERS) is the most common type of a listing agreement. ERS guarantees that during the time the Listing Agreement is in effect, the real estate broker will be paid the agreed upon commission, no matter who procures the buyer.
A good broker is going to spend significant time and expense in marketing your home and assisting you with the sale transaction. By having the exclusive right to sell, this helps the broker ensure that when the fruits of his labor pay off, he will be able to earn a commission.
Exclusive Agency (EA) is very rarely used. In this type of Listing Agreement, the seller reserves the right to sell the property on her own, without paying a commission to her broker. It still allows an agent to list and market your home, guaranteeing them a commission if the house sells through any real estate broker or company
While there are other listing concepts such as Net Listing, they are so uncommon that we will not mention them here.
Note to webmasters: you may reprint the above article in its entirety provided that you give credit in the form of an active link, please credit as follows: This article reprinted with permission of: www.TaosNewMexico.com