Completing Listing Contracts in North Carolina Learn The Ropes

Basics of North Carolina Listing Contracts Types of Listing Contracts in North Carolina

• An exclusive right to sell agreement is where we provide the highest level of service to the seller. It allows the agent to list the property and receive a commission for professional services performed no matter who brings the buyer to the transaction.
• In an exclusive agency agreement, only one broker lists the property. If our broker or any other broker sells the property, the listing agent/broker is owed a commission as agreed to in the agency agreement. If the seller locates the buyer, no commission is owed.
• In an open listing agreement, the seller may contract with many real estate agents to locate a buyer. Only the agent who brings in the buyer earns the commission. Call Dwain Ammons for free no obligation property listing discussion   (828) 447-0036.

Terminating Real Estate Listing Contracts in North Carolina

There are many ways to terminate a listing contract, including:

• When the property sells and closes.
• When the stated listing term ends, even if the property has not sold.
• By mutual agreement.
• By abandonment by the listing agent.
• Through breach of duties by either the seller or the broker.
• By the seller’s request (with agreement/permission from the listing broker)
• By death or insanity of the principal.
• By dissolution of the brokerage firm.
• When the property is completely destroyed (for example, by fire or other means)
• When the property is partially destroyed rendering it not marketable.
• Through a legal intervention like a bankruptcy or property destruction.

Elements of the NC Real Estate Listing Contract

• NC Listing contracts must be written in clear and unambiguous language, and must meet the following requirements:
• Must have a definite expiration date.
• Must contain anti-discriminatory language.
• Must be signed by all the parties to the agreement.
• Must include the listing broker’s license number.

North Carolina Listing Contract Timelines

• Listing contracts should be completed prior to our  agent/broker performing any activities for the seller that would create an agency relationship.
• After the listing presentation, we will go over all of the provisions in the listing contract and complete the document with the seller.
• We will provide sellers with a copy of the purchase contract to review so that sellers know what to expect when they receive an offer.
• We are required to provide a copy of the listing agreement to the sellers within three days of the document being executed. Call Dwain for free no obligation property discussion (828) 447-0036.

Guidelines for Completing North Carolina Listing Contracts

• The listing contract should be legible (either typed or written in ink).
• All blank spaces should be filled in, even if it’s with “N/A” or “none.”
• Sellers may not sign an incomplete contract.
• We will use complete and precise answers on the form, and avoid abbreviations, acronyms, and technical jargon.
• Changes to the contract (additions or deletions) should be initialed and dated by both the agent and the seller.
• We may not provide any legal advice, but should recommend that sellers consult with an attorney if they have any legal questions about the contract.
• Use complete names for each seller on the contract.
• We may draft additional provisions in the “additional terms and conditions” section of the contract, but should use caution when doing so.
• A married seller’s spouse must sign the listing agreement, even if the spouse is not a recorded owner of the property being sold. In the event that married sellers have an existing prenuptial or postnuptial agreement in place, brokers should consult with an attorney to determine whose signatures are needed.

Residential vs. Commercial Listing Agreements in North Carolina

• Brokers should be familiar with both residential and commercial listing agreements so they use the correct form for each transaction.
• While the forms contain similar language and provisions, there are some differences between the two:
• The residential listing contract contains information about personal property, seller representations that are specific to residential properties, and a warning about wire fraud.
• The commercial listing contract is shorter, contains an option for sellers to reimburse the firm for marketing expenses, and has a provision regarding intellectual property.

Mastering the Residential North Carolina Real Estate Listing Contract

A residential real estate listing contract is a crucial document that sets the terms and conditions for the relationship between a property owner and a real estate agent. In North Carolina, like in many other states, certain standard forms are commonly used for such transactions. To navigate the complexities of the Residential North Carolina Real Estate Listing Contract, both sellers and real estate agents must have a comprehensive understanding of its components and implications.

Key Components of the Residential North Carolina Real Estate Listing Contract:

• Identification of Parties:
  • Clearly identifies the seller(s) and the listing firm.
  • Includes the agent’s contact information and license number.
• Property Description:
  • Provides a detailed description of the property, including its address, legal description, and any pertinent details that potential buyers should be aware of.
• Listing Price and Terms:
  • Specifies the listing price agreed upon by the seller and the agent.
  • Outlines the terms of the listing, including the duration of the agreement and any specific conditions or contingencies.
• Listing Period:
  • Defines the duration of the listing agreement, outlining the start and end dates.
  • Allows for negotiation of the timeframe during which the agent has the exclusive right to market the property.
• Compensation:
  • Clearly states the compensation structure for the listing agent, typically expressed as a percentage of the sale price.
  • Outlines how the commission will be distributed among cooperating brokers, if applicable.
• Agency Relationship:
  • Specifies the agency relationship between the seller and the listing firm, clarifying whether the agent is acting as a seller’s agent, subagent, or dual agent.
  • Discloses any potential conflicts of interest.
• Brokerage Fees and Expenses:
  • Details any fees or expenses the seller is responsible for, such as marketing costs, photography, or staging services.
• Marketing Plan:
  • Outlines the agent’s proposed marketing strategy, including online and offline methods, open houses, and other promotional activities.
• Property Condition Disclosure:
  • Addresses the seller’s obligation to disclose known material defects in the property.
  • Advises the seller on the importance of providing an accurate property condition disclosure statement.
• Termination and Withdrawal:
  • Defines the conditions under which either party can terminate the listing agreement before its expiration.
  • Clarifies the procedures for withdrawal and the responsibilities of each party upon termination.
• Dispute Resolution:
  • Specifies the process for resolving disputes between the parties, which may include mediation or arbitration.

Tips for Mastering the Residential North Carolina Real Estate Listing Contract:

• Thorough Understanding:
  • Both sellers and agents should thoroughly read and understand the terms and conditions of the listing contract before signing. Seeking legal advice if needed is encouraged.
• Clear Communication:
  • Open and clear communication between the seller and the agent is crucial. Any concerns or questions should be addressed and resolved before finalizing the agreement.
• Negotiation Skills:
  • Negotiation is a key aspect of real estate transactions. Both parties should be prepared to negotiate terms that are fair and acceptable to all parties involved.
• Accurate Property Information:
  • Sellers must provide accurate and complete information about the property to avoid potential legal issues in the future.
• Professional Guidance:
  • It is advisable for both sellers and agents to seek professional guidance from real estate attorneys or experienced professionals to ensure compliance with North Carolina laws and regulations.
• Continuous Monitoring:
  • Real estate markets can change, and property dynamics may evolve. Both parties should stay informed about market conditions and be willing to adjust strategies if needed.

By mastering the Residential North Carolina Real Estate Listing Contract, both sellers and agents can enter into a mutually beneficial partnership with clear expectations and a solid foundation for a successful property transaction. Open communication, attention to detail, and adherence to legal requirements are key to a smooth and successful real estate listing process.

dwain@ammonsrealestate.com

The North Carolina Real Estate Commission requires me to provide my clients with a Working With Real Estate Agent Brochure. Click on this Mandatory Brochure LINK for your copy. View the NC Fair Housing Disclosure Here

 

Wire Fraud is real before wiring any money, call the intended recipient at a number you know is valid to confirm the instructions. Additionally, please note that the sender does not have authority to bind a party to a real estate contract via written or verbal communication.

DISCLAIMER

All listing information deemed reliable but not guaranteed as listings and properties are constantly being updated. This article is for informational purposes. Please consult an attorney for any NC real estate legal questions.

 

Call Dwain at (828) 447-0036 or simply email dwain@ammonsrealestate.com for quick assistance about any listing shown in WNC.