Or You'll Be Red!
There used to be a time when a nod and a handshake could seal a deal when buying and selling real estate. Those times are long since past. Nowadays, a contract absolutely must be in writing to be enforceable! That goes almost without saying when it's a buyer making an offer to buy a piece of property from a seller, but what about a real estate agent who creates a contractual relationship with a seller?
It is important for you to know that an agent has a fiduciary responsibility to you when you've signed an agreement to list your home with them. What exactly does this mean? A fiduciary is someone that you have chosen to act in your behalf in the sale of your property. You give this agent your trust and confidence in allowing him/her to represent you. In return, the agent assumes a duty to act in good faith, exercising care, honesty, and loyalty to you in fulfilling this obligation. A good agent will always act in your best interests, and this includes protecting you by having every contractual detail in written form, from the listing agreement to the final offer.
When listing your home with an agent, you should expect to receive a copy of the agreement--if not on the day of signing--at least within a reasonable amount of time. It is a wise decision to keep this agreement available in the event that you will need to refer to it. Of particular importance is the expiration date. This is the date that your home is officially no longer active in the Multiple Listing Service and is not being marketed any longer by your agent. Usually, your agent will contact you well in advance if it appears that your home will not sell by the expiration date. By law, an extension of the original listing agreement is required--in writing--for a home to remain active in the Multiple Listing Service. You should receive a copy of this extension, also in a timely manner.
This may seem like a lot of treading water over a seemingly insignificant topic, but let me share with you why it's a big concern to me. There have been instances where a listing has expired, and it has been relisted, sometimes within a day of the expiration. The problem is not in the speed with which the home was relisted, but it was that the seller had no idea the home was relisted! This is your home, and it's your decision whether to relist with an agent or to move on to other options. Besides that, it's against the law, and it doesn't protect your interests, which is the worst possible thing that an agent can do when they have a fiduciary responsibility.
Remember--get it in writing. Every time. It could mean the difference between a successful sale or a woeful tale.
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