A California real estate listing agreement is a type of contract used to grant authority to a real estate broker to sell residential property for a seller. The broker, and the agency they work for, may be given exclusive rights to sell, which means they are the only agency representing the seller and will receive a commission (a fixed rate or percentage of the sale price) for their services regardless of how a buyer is found. Otherwise, the agreement may be set up so that the seller doesn’t pay a commission if they find a buyer without the agency’s help (“exclusive agency”) or can even hire multiple agencies (“open listing”). Other important factors that must be determined in a listing agreement are the commission rate, the length of the agreement, marketing and advertising, and the duties and obligations of both parties.
- Laws – BPC § 10018.14 – 10018.17
- Dual Agency (CIV § 2079.13(d), § 2079.16 and § 2079.17) – A real estate broker can act as the agent for both the seller and buyer as long as both parties have provided written consent.
- Purchase Agreement – For entering into a contract over the sale of the property. Completed and signed by the buyer, seller, and agent(s).
California Association of Realtors Residential Listing Agreement – This is an exclusive authorization and right to sell listing agreement for residential real estate in the state of California that can be used by real estate brokers to obtain the exclusive right to sell an owner’s real property.
This advisory statement is typically provided to real estate agents’ clients at the same time as the Agency Disclosure (linked below under disclosure #2), which states that individuals’ information may be collected and shared with third parties and that they may choose to opt-out of this information transfer and request certain businesses to delete collected information.
Both the seller’s agent and the buyer’s agent have to disclose to both parties which party they represent. In situations where an agent is representing both parties, dual agency relationship must be disclosed (CIV § 2079.14 & § 2079.16).
Seller’s Brokerage Firm to Seller: Must be presented to the seller by the seller’s agent before entering into a listing agreement.
Buyer’s Brokerage Firm to Buyer: Must present this form to the buyer before an offer to purchase has been executed.
Real estate brokers shall provide this disclosure form to their clients to notify them that they may represent other buyers and sellers who are interested in buying/selling real estate that may be similar to the properties their clients are purchasing or selling.
California law requires that all owners selling residential property complete a Transfer Disclosure Statement and deliver it to the buyer. This disclosure form will inform the buyer as to the major defects and issues with the property being sold.
This disclosure form is only required to be delivered to the seller by the seller’s agent. It lets them know what to expect when going through the process of selling their home, including required disclosures, reports, inspections, taxes, market conditions, and fair housing policies.
Agents must provide this advisory form to their clients (both buyers and sellers) to help educate the parties to a real estate transaction on what disclosures are required by law as well as the rights of duties of each individual.
This disclosure statement must be provided to all parties to a real estate transaction by their agents for the purposes of informing them of the risks of fraudulent hacker activity and how to avoid being scammed into sending money to the wrong account.