What's in a listing agreement
The end date, the fee, when it's earned, and how to cancel: what to look for before you sign with a listing agent.
No obligation. No pressure. Takes about 2 minutes.
The short answer
A listing agreement is the written contract between you and a brokerage to sell your home. It sets how long the listing lasts, what you'll pay and when the fee is earned, and how it can end. Virginia and Maryland law both require the agreement to be in writing with a definite end date and the fee stated; Maryland also requires a cancellation provision. Rules differ by state, so read yours closely.
Step by step
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1
The end date
Virginia's § 54.1-2137 requires a definite termination date, and if there isn't one the agreement ends 90 days after it was signed. Maryland's § 17-534 requires a definite termination date that takes effect automatically, without notice from you.
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2
The fee and when it's earned
Virginia requires the agreement to state the fees and how and when they're paid. Maryland requires the compensation amount and an explanation of the events or conditions that entitle the broker to a commission. Check whether a fee is owed if you sell to someone you found yourself, or after the listing ends.
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3
Payments to a buyer's agent
Maryland requires the agreement to say whether the broker can share compensation with other brokers, and how much. Under the NAR settlement, your agent must disclose any payment to a buyer's broker to you in writing, in advance, and get your approval.
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4
How it can end
Maryland requires a provision for cancellation by you, the broker, or both by agreement. In Virginia, the relationship ends at completion, the agreed expiration date, mutual termination, or a default. If you're unsure what you can cancel, ask a real estate attorney.
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The type of listing
Many agreements are exclusive right to sell, which generally means the brokerage earns its fee if the home sells during the term, whoever finds the buyer. Virginia also requires the agreement to state the services the agent will provide, so check that marketing, photos and showings are written down.
Sources: Code of Virginia § 54.1-2137, brokerage agreements · Maryland Code, Business Occupations and Professions § 17-534 · National Association of REALTORS, Home Sellers: Here's What the NAR Settlement Means for You
This is general information, not legal advice. We're a cash home buyer, not a real estate brokerage, and we don't endorse any particular agent. A real estate attorney can review a listing agreement before you sign.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
If you're deciding whether to list at all, we can show a cash offer next to what listing could net, before you sign anything.
Frequently asked questions
How long does a listing agreement last?
As long as the agreement says. In Virginia, if no end date is stated, it ends 90 days after signing. In Maryland, it must have a definite end date that takes effect automatically.
Can I cancel a listing agreement?
Maryland requires every listing agreement to include a way for you or the broker to cancel. In Virginia, it can end by mutual agreement, expiration or default. Read your agreement and ask a real estate attorney if you need to get out of one.
Does DC have the same rules?
Rules differ by state. In DC, read your agreement closely for the end date, fee and cancellation terms, and ask a real estate attorney if anything is unclear.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.