What Is In The Listing Contract?
We're ready to put your home on the market, but first we have to complete the listing contract, 3 pages that delineate the key elements of what exactly is for sale, and the operating conditions for selling your home. We use the Cincinnati Area Board of REALTORS® , INC. Exclusive Right To Sell contract. This contract is reserved solely for use by REALTORS® and their clients. There are of course other contracts available in the state, so our discussion below is specific to the CABR Exclusive Right To Sell contract.
The three pages are broken into 34 sections, and we're going to highlight some of the key sections, but not all. You can assume that every one of these sections has been created because at some point, something wasn't clear, so the attorneys clarified!
So here we go with the key elements!
Who is being hired? We are, via our brokerage RE/MAX Elite.
What are we selling? The address and description of the property. Additional lots included need to be detailed.
What is the offer price? This is key to getting the right buyer attention.
How long is the contract? We typically have a six month period, but we don't take hostages. You're not happy or your needs change, we'll release you.
What's included in the sale? What's excluded? You need to take a REALLY close look at section 3. Got a favorite plant you plan to take out of the yard? Think you can take that window a/c unit? Curtain rods? Make sure you understand what you're REQUIRED to leave for the buyer.
Personal property to be included with the sale? Built in appliances like the stove are expected to stay. Other items like the refrigerator don't have to be and can be negotiable.
When are you willing to give possession of the home? Not a date, but "at closing", 3 days post closing,etc.? This will actually get negotiated as part of the purchase contract. We typically recommend "Negotiable".
Section 7 is Seller's Certification. Historic home? HOA? Shared driveways? There's a host of questions here that will need your answers.
Disclosures and HOAs. Requirements to accurately complete the Ohio Residential Property Disclosure and Lead-Based Paint Certification forms. And if in HOA, PLEASE get your hands on a copy of the rules for your development. Buyer will be entitled to review these as part of the purchase process.
Conveyance. Section 11 indicates that you will transfer title free and clear at closing. Anyone else have interest in the home? We need to list them here. Ohio is a dower state, so even if your spouse isn't on the deed, they've still got an ownership interest.
Prorations. As seller, you're responsible for taxes through the day of closing. And HOA fees too.
Our pay. Here's where it's defined how much total commission is offered and how much goes to the buyer's agent.
Civil Rights. Bottom line, the ONLY concern should be green. Can the buyers afford to buy your home? There are protected classes per Federal and Ohio law. Violate those requirements and we're out of here, pronto! We'd like to keep our license and won't risk it because of someone's bias.
Marketing Authority. You're giving us permission to provide non-confidential information regarding your home, place a sign, advertise on the 'Net, put a key in the lockbox, etc.
Seller's Cooperation. You WILL allow every showing request, no matter how last minute or inconvenient. Okay, that's NOT what it says, but we do expect REASONABLE cooperation to allow showing. We understand you have a life too, and it's not ALWAYS going to work out. Just understand the risk that a declined showing may not come back and we may now be looking for another JUST RIGHT buyer.
Earnest Money. It's not yours, it's not ours. It goes into a trust account. If a dispute, there's a process for deciding where it goes.
Home warranty & title insurance. Want to offer a home warranty or title insurance for the buyer?
Affiliated Business Arrangement Disclosures. Our office, like most, does have some affiliated businesses. We've got a separate form for this.
C.L.U.E. Report. Did you know there's a report for homes similar to CARFAX for cars? Buyers can ask for a report of home insurance claims.
Agency. Disclosures on how we work with the public and a big paragraph on Dual Agency (section 26).
Indemnity by Seller. We operate based on the information you provide. You fib and we get in trouble, we're SUPPOSED to be held harmless. But let's face it, irritated buyer will potentially sue you, sue us, sue our brokerage and let the judge sort it out. We'd rather not be in that position at all, so let's keep it straight and narrow.
Disclosure. Again, we can put out non-confidential information to promote your home. And if we get multiple offers, you CAN authorize us to inform all parties to try and get the best offer from them.
Additional terms and conditions. Nothing specific here, but if there's something you want added, this is the place for it.
Sections 30-33. Sex offender in the area? You don't have to disclose, buyer beware state. Sole contract, only ONE listing brokerage allowed. Sellers acknowledgment. Got questions? Consult an attorney! We can answer general questions within the scope of the contract, but we're NOT attorneys!
Signatures. You sign, we sign, it's a deal! Let's get started selling your home!
Any questions on the additional content or details of the contract, or on the home selling process in general, please don't hesitate to contact us!
Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz