Listing and Buyer Representation
Listing agreements
Know four structures and who gets paid. Exclusive right to sell: broker earns a fee no matter who procures the buyer, including the seller. Exclusive agency: seller retains the right to sell unrepresented and owe nothing. Open listing: non-exclusive; only the procuring broker is paid. Net listing: seller sets a net figure and the broker keeps the excess - illegal or restricted in most states and always an ethics trap. Every listing must be written, have a definite term, and comply with state agency-disclosure rules.
Buyer representation
Buyer agreements mirror the listing side: exclusive, exclusive-agency, and open. A strong agreement states term, geographic scope, property type, compensation (amount, how it is paid, and what happens if the seller or listing broker offers nothing), and termination. Since the 2024 practice changes, compensation for the buyer's broker is negotiated between buyer and broker, cannot be advertised in the MLS, and a written agreement is required before touring homes. Compensation may still be offered off-MLS and can be requested as a seller concession.
Representation puzzles
Dual agency (consent required, often limited), designated agency, and Florida-style transaction brokerage each alter duties. Fiduciaries owe obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.
Worked example: A $500,000 exclusive-right-to-sell listing at 5% pays $25,000. The seller finds an unrepresented buyer at week three and wants to cancel. Under an exclusive right to sell, the broker is still owed $25,000; under exclusive agency, the seller owes nothing. That one clause is worth more than most agents realize.
Traps: confusing exclusive agency with open listing; forgetting MLS Clear Cooperation (public marketing requires an MLS submission within one business day, with narrow office-exclusive and delayed-marketing exceptions); promising services outside your written agreement.