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Listing or Commission Agreements
Common Types of Listing or Commission Agreements
An exclusive agency contract will not permit the party that is
responsible for the payment of the commission to enlist the
services of another broker until the current listing or commission
agreement has expired. If another broker is retained and they
broker a deal, the original broker is entitled to a commission and
in such a case, the party responsible for paying the commission
may be forced to pay that commission twice if the underlying
documents are not properly drafted. However, under an
exclusive agency contract, the party who is responsible for the
payment of the commission may broker a deal on their own
behalf and the broker under the exclusive agency agreement
will not be entitled to a commission.
Under an exclusive right to sell agreement or an exclusive listing
agreement, the broker is entitled to a commission if the requisite
transaction occurs, regardless of who was the procuring cause.
Therefore under an exclusive right to sell agreement or an
exclusive listing agreement, even if the party who is responsible
for paying the commission brokers the deal themselves and the
real estate broker does nothing, the broker is still entitled to
receive the commission.
Return to Listing or Commission Agreements
Law Office of
Craig W. Little, P.A.