After you have found a real estate broker for your home, you will be given a listing paperwork. Before signing this paperwork, it is important to be familiar with what it encompasses. The MA listing paperwork terms in this blog will better prepare you for this.
Broker Compensation
Commission is usually specified as a percentage of the selling price. It is against the law for brokers to imply that a rate is standard in the market. Every brokerage determines its own fees and, like everything else in real estate, it may be negotiable. It is important to understand the knowledge and services offered by individual real estate brokers when comparing their fees. Simply finding one with the best fee may not necessarily benefit you in the end.
Listing brokers traditionally share a certain percentage of the fee with buyer agents. The amount is entered in the MLS system. Higher amounts can sometimes encourage buyer agents to promote your listing and, likewise, lower percentages can discourage other agents. This is particularly true when the number of available homes is high. If the amount is not mentioned, you can ask for the figure.
Lastly, the paperwork also notes when the compensation are actually earned. It is important to read this language carefully. Your contractual responsibility to your agent is different from that to any buyers. Therefore, it is not merely dependent on a closing.
Professional Services
You must permit your broker to handle certain tasks. The most obvious one is to submit the details of your listing into the local MLS (multiple listing service). This service shares the information to all real estate agents and to a variety of authorized websites. By widening the exposure of your listing, you will improve the chances of it being sold and for a higher value. Placing signs, installing a lock box, and performing open houses are other items that you may be asked to sign off on in the listing paperwork.
Agency Obligations
Real estate professionals are not solely salespeople. They are actually agents in the legal sense and have distinct obligations under the law. These are referred to as fiduciary duties and include care, lawful obedience, accounting of funds, confidentiality, diligence, disclosure, and loyalty. In general, your real estate broker must work for you and protect your interests. There can be times where a agent also works for an individual wanting to buy your property. The paperwork will stipulate how this should be handled, such as prior disclosures, and what services will be due to each party. Make sure that you fully understand the potential scenarios and are comfortable with them.
MA Listing Paperwork Terms
The MA listing paperwork terms in this article are some of the most common components of listing paperwork but may not address all language in your specific paperwork. As with any type of paperwork, read through the full document carefully, inquire about things that are confusing, and seek additional help if you prefer legal advice.