While sellers should be directly involved in the negotiations and hire external consultants to discuss the legal issues related to the negotiations on the EPI and Listing agreements, brokers are useful in understanding market trends and carrying out business. The broker`s participation in the negotiations involves the preparation of a request on proposal (or response to the request), the delivery of all offers to the seller and the response to offers, such as led by the seller, the negotiation and conclusion of a letter of intent, contributions to negotiations between the seller and the buyer, and the issuance of progress reports describe the status and nature of the negotiations. In addition, other conditions that may appear in the agreement may include: With an exclusive right to sell list, a broker is designated as the seller`s exclusive representative and has the exclusive right to represent the property. The broker receives a commission, regardless of who sells the property, while the listing agreement is in effect. In order to continue to protect the seller, the list agreement should provide that the broker compensates the seller and limits the damage suffered by the seller in accordance with the agreement. Compensation from the seller`s broker should be for an exclusive right to the listing sale is the most used list agreement. Under this agreement, the broker has the exclusive right to market the property for a specified period of time. If the property sold while the real estate agent has the list, the seller must pay the agreed commission, regardless of which buyer actually got it. This limits any conflict with the seller as to who was responsible for the buyer`s acquisition. Compensation should cover the protection of the seller`s executives, directors, employees and affiliated companies. Finally, the seller should not be held liable to the broker for subsequent, special, incidental, indirect or punitive damages related to the broker. The list agreement should expressly state that the seller is responsible for the entire trading process, with the broker only participating in the trading stages and providing the services discussed above. The broker is an expert on the real estate market, he should have knowledge of the market and participate in all stages of trading, but only as approved by the seller.
Therefore, the list agreement should specify that the broker is an independent unit and not an agent of the seller. The seller should be responsible for his brokerage fees. The commission is paid for the services provided when the property is sold to a buyer obtained by the broker, seller or other person during the duration of the list agreement.