The Listing Agreement is a crucial document in the real estate world that establishes a contract between the real estate company and the owner interested in selling a property.
This agreement defines whether the sale is with or without exclusivity and establishes the real estate agent’s fees.
Its importance lies in its fundamental role in ensuring a smooth and effective transaction.
What is an Listing Agreement?
The Listing Agreement is a real estate contract. This document, also known as a real estate brokerage contract, establishes in writing the commercial relationship between a real estate agency and the owners of a property who wish to entrust the management of the sale or rental of their property.
It is the formalization of an agreement where the owners entrust the agency with the responsibility of marketing their property, while the agency accepts this task, committing itself to perform it as established in the contract.
Importance of the real estate Listing Agreement
This document provides a series of guarantees necessary to ensure that the sale or rental takes place without problems that may affect any of the parties involved. If this document is disregarded, in the event of non-compliance, it will be difficult to claim or demand the pertinent rights.
Although some agencies may omit the order form, according to Law 18/2007 on the Right to Housing, it is a legal requirement to sign this note before starting the offer of a property.
Diversity of Listing Agreements
Within the variety of real estate assignment notes, a distinction is made between exclusive and non-exclusive sales.
- ExclusiveListing Agreement :grants exclusive power of attorney to an agency or professional to market a specific property. This agreement is established by means of a clause in the order note, which specifies a deadline for the completion of the sale.
- Listing Agreement without exclusivity: it lacks this clause, allowing the sale of the property by third parties. However, if a buyer is introduced by the agent managing the property, the agent can claim the fees from your real estate company by recording this information on the property visit sheet.
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Regardless of the agency, certain elements must be present in the assignment note.
- Data of the owners of the property. They must be the actual owners or, failing that, the person who has a power of attorney authorizing it.
- Property data such as encumbrances, encumbrances, social housing qualification, etc.
- Name of the company or real estate agent along with the rest of the fiscal data.
- The agreed purchase or rental price must never be missing.
- The commission percentage of the real estate agent or agency.
- Se establecerá un periodo de tiempo para realizar el proceso. It should also state whether such period can be renewed.
- Es recomendable que aparezca la información sobre la reserva y el contrato de arras.
- Of course, the real estate order note must be signed by both parties. be signed by both parties to be valid.
Balanced Negotiation and Avoidance of Abusive Clauses
The clauses must be negotiated with customers to prevent them from being considered abusive. The contract must balance the obligations of both the owner and the agency, detailing the services offered and compensation in case of non-compliance.
It is necessary to avoid clauses that limit the customer’s rights or contradict current legislation.
Clear and complete structure of the contract
The assignment note should be divided into a general and a specific part. The first part covers basic and legal information, while the second part, negotiated with the client, details the obligations of both parties, schedules, duration of the contract and indemnities in case of non-compliance. This structure provides clarity and defines the responsibilities of each party involved in the agreement.
The Nota de Encargo is a crucial component in the real estate transaction process, providing clarity, security and legal protection for both the agency and the owner, establishing the basis for a sale and purchase.
