Here’s a summary of the California Residential Listing Agreement (commonly used form: CAR Form RLA – Residential Listing Agreement – Exclusive Right to Sell):
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Purpose:
This agreement gives a real estate broker the exclusive right to represent a seller in the sale of residential property.
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Key Sections:
1. Listing Period
• Specifies the start and end dates of the agreement.
• During this period, the broker has the exclusive right to market and sell the property.
2. Listing Price and Terms
• States the asking price and any terms or conditions (e.g. inclusions, exclusions, financing preferences).
3. Broker’s Duties
• The broker agrees to market the property, present offers, and act in the best interests of the seller.
• May include MLS submission, advertising, open houses, etc.
4. Seller’s Duties
• Seller agrees to cooperate, make the property available for showings, and disclose all known material facts.
• Also must provide required disclosures and reports.
5. Compensation
• Specifies the commission amount (usually a percentage of the sale price).
• States how and when the commission is earned – typically when a ready, willing, and able buyer is found.
• May include terms for cooperating brokers (splitting commission).
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• Outlines whether the broker is acting as a seller’s agent, dual agent, or limited agent.
• Requires acknowledgement of the Disclosure Regarding Real Estate Agency Relationship (CAR Form AD).
7. MLS and Internet Advertising
• Authorizes the broker to publish the listing in the Multiple Listing Service (MLS) and online unless opted out.
8. Dispute Resolution
• Often includes a mediation and arbitration clause for resolving disputes between parties.
9. Additional Terms
• Space for any custom agreements, exclusions, or specific instructions.
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Important Notes:
• The RLA is a legally binding contract once signed.
• It is exclusive, meaning the seller owes commission even if they find the buyer themselves (during the term).
• Sellers should read all terms carefully, especially around commission, listing period, and cancellation.