What is Required in a Listing Agreement?

When an individual hires a real estate agent to sell 
his or her house, they enter into a written.....   Seller(s) will agree to a dual agency
contract called a Listing Agreement.  Thisrepresentationand will consider offers made by
agreement spells out the agent’s duties andbuyersrepresented by broker.
responsibilities, and gives him or her the right to 
sell the property.  Listing agreements vary from.....   Seller(s) will not agree to a dual
state to state, and like most things, they areagencyrepresentation and will not consider offers
subject to change. madeby buyers represented by broker.
  
Case Study: Jane Doe wants to hire a real estate..........     …….....................................
agent in Minneapolis to sell her house.  Before sheSeller      Real Estate Company Name
can get started, she must sign a Listing 
Agreement.  She has never signed a contract like….....       
this before, and she has some questions.  WhatSeller       By:……………………….
terms must be in the agreement?  What things                      Salesperson
are prohibited? 
 Date : ......... ;
In Minnesota, we must look to Minnesota Statute   
Section 82.21 subdivision 2 to help her find the(9) a notice requiring the seller to indicate in
answers.  As of this writing (June 12, 2008) thewriting whether it is acceptable to the seller to
statute says the following:have the licensee arrange for closing services or
 whether the seller wishes to arrange for others
(a) Requirement. Licensees shall obtain a signedto conduct the closing; and
listing agreement or other signed written 
authorization from the owner of real property or(10) for residential listings, a notice stating that
from another person authorized to offer theafter the expiration of the listing agreement, the
property for sale or lease before advertising toseller will not be obligated to pay the licensee a
the general public that the real property isfee or commission if the seller has executed
available for sale or lease. For the purposes of thisanother valid listing agreement pursuant to which
section "advertising" includes placing a sign on thethe seller is obligated to pay a fee or commission
owner's property that indicates that the propertyto another licensee for the sale, lease, or
is being offered for sale or lease.exchange of the real property in question. This
 notice may be used in the listing agreement for
(b) Contents. All listing agreements must be inany other type of real estate.
writing and must include: 
  
(1) a definite expiration date; 
 Prohibitions
(2) a description of the real property involved;(c) Prohibited provisions. Except as otherwise
 provided in paragraph (d), clause (2),licensees shall
(3) the list price and any terms required by thenot include in a listing agreement a holdover
seller;clause, automatic extension, or any similar
 provision, or an override clause the length of
(4) the amount of any compensation orwhich is more than six months after the
commission or the basis for computingexpiration of the listing agreement.
thecommission; 
 (d) Override clauses.
(5) a clear statement explaining the events or 
conditions that will entitle a broker to(1) Licensees shall not seek to enforce an
acommission;override clause unless a protective list has been
 furnished to the seller within 72 hours after the
(6) information regarding an override clause, ifexpiration of the listing agreement.
applicable, including a statement to theeffect that 
the override clause will not be effective unless the(2) A listing agreement may contain an override
licensee supplies the seller with a protective listclause of up to two years in length whenused in
within 72 hours after the expiration of the listingconjunction with the purchase or sale of a
agreement;business. The length of the override clause must
 be negotiable between the licensee and the seller
(7) the following notice in not less than ten pointof the business. The protective list provided in
boldface type immediately preceding any provisionconnection with the override clause must include
of the listing agreement relating to compensationthe written acknowledgment of each party
of the licensee:named on the protective list, that the business
 which is the subject of the listing agreement was
"NOTICE: THE COMPENSATION FOR THE SALE,presented to that party by the licensee.
LEASE, RENTAL, OR 
MANAGEMENT OF REAL PROPERTY SHALL BE(e) Protective lists. A broker or salesperson has
DETERMINED BETWEEN EACH INDIVIDUALthe burden of demonstrating that eachperson on
BROKER AND THE BROKER'S CLIENT.";the protective list has, during the period of the
 listing agreement, either made an affirmative
(8) for residential property listings, the followingshowing of interest in the property by responding
"dual agency" disclosure statement:to an advertisement or by contacting the broker
If a buyer represented by broker wishes to buyor salesperson involved or has been physically
the seller's property, a dual agency will becreated.shown the property by the broker or salesperson.
This means that broker will represent both theFor the purpose of this section, the mere mailing
seller(s) and the buyer(s), and owe the sameor other distribution by a licensee of literature
duties to the buyer(s) that broker owes to thesetting forth information about the property in
seller(s). This conflict of interest will prohibit brokerquestion does not, of itself, constitute an
from advocating exclusively on the seller's behalf.affirmative showing of interest in the property on
Dual agency will limit the level of representationthe part of a subsequent purchaser. For listings of
broker can provide. If a dual agency should arise,nonresidential real property which do not contain
the seller(s) will need to agree that confidentialthe notice described in paragraph (b), clause (10),
information about price, terms, and motivation willthe protective list must contain the following
still be kept confidential unless the seller(s) instructnotice in boldface type:
broker in writing to disclose specific information 
about the seller(s). All other information will be"IF YOU RELIST WITH ANOTHER BROKER
shared. Broker cannot act as a dual agent unlessWITHIN THE OVERRIDE PERIOD AND THEN
both the seller(s) and the buyer(s) agree to it. BySELL YOUR PROPERTY TO ANYONE WHOSE
agreeing to a possible dual agency, the seller(s) willNAME APPEARS ON THIS LIST, YOU COULD BE
be giving up the right to exclusive representationLIABLE FOR FULL COMMISSIONS TO BOTH
in an in-house transaction. However, if the seller(s)BROKERS. IF THIS NOTICE IS NOT FULLY
should decide not to agree to a possible dualUNDERSTOOD, SEEK COMPETENT ADVICE."
agency, and the seller(s) want broker to 
represent the seller(s), the seller(s) may give upAs always, you should check to see if there have
the opportunity to sell the property to buyersbeen any subsequent changes made to the
represented by broker.above-mentioned. Also keep in mind that every
 state has different rules and regulations that
Seller's Instructions to Brokergovern these agreements.  You should always
 consult a professional in your location.  This article
Having read and understood this information aboutshould not be considered legal advice.  This
dual agency, seller(s) now instructsbroker asinformation is provided as a public service.
follows: