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Residential Listing Agreement

The next step is to solidify our relationship by completing a Residential Listing Agreement or (RLA).  The RLA is simply a formal handshake agreement stating that we have a relationship so that I can legally assist you and advise you in the coming months.  In addition, it will allow me to be a “squeaky wheel” on your behalf, which may speed things up a bit for you at the Retirement Community.  You are not obligated to pay anything unless I sell your home.

 

I have attached a “sample” version of the California Association of Realtors, Residential Listing Agreement, Revised 7/24, along with the other supporting documents. 

You might NOT want to print this file, as it is quite large. 

 

All of the verbiage in the agreements are very important. 

 

I will attempt to explain the documents as simply as I can. 

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I highlighted what I feel are the most important things to take notice of. 

 

Please click on the "Download Sample RLA" button below and follow along using the highlighted sample.

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The Agency Relationship Disclosure (AD)(2 Pages):

  • Explains that we have a relationship and that I am the Agent for the Seller. 

  • I have a fiduciary duty to the Seller and other duties to both the seller and the buyer

  • Although it is legal in California for me to represent the buyer as well, I do NOT work with or represent buyers, as that would be a conflict of interest.

  • Page 2 simply explains that the following terms have the following meanings (definitions).

 

Residential Listing Agreement (RLA)(7 Pages):

Note: In a nutshell, all of the most important terms and conditions are located in the first two pages of the seven-page agreement. 

  • Section 1 is the Exclusive Right to Sell:  This section grants the broker the exclusive authority to market and sell the property. The seller agrees that the broker will earn a commission regardless of who brings in the buyer, even if the seller finds the buyer themselves.

  • Section 2 holds all of the Terms of the Listing Agreement which are all spelled out in the table under section 2. 

    • The item number is listed in the first column and the paragraph that explains the item numbers are found in the second column.  So, if you need further information on a certain item, simply scroll down to the associated paragraph for a more detailed explanation.

 

  • A(1): Listing Period.  Includes the beginning and end date for the agreement.  Our agreements are usually six months from the time we can get started. If we can't get started right away, then we will add three to six months to the agreement.

  • A(2): Listing Price: This is simply a place marker for now. We will decide on the actual listing price right before we go on the market.

  • C: Compensation: This simply states that all commissions are negotiable.

  • C(1): Compensation to Seller’s Broker: This line lists the Listing Agent’s commission percentage. No Commission percentage is listed for the buyer’s agent.  Buyers agents’ commissions are negotiated while reviewing the Buyer’s Residential Purchase Agreements (RPAs).  Please see the document entitled “Broker Compensation Advisory”

  • C(2): Compensation to seller’s broker if buyer is unrepresented.  This line is for buyers who do not want to be represented by a realtor. As I've mentioned before, I do not represent buyers, so I do not include any compensation in this line of the agreement.

  • C(3): Continuation of right to compensation for broker identified prospective buyers: This line discusses what happens after the listing agreement has ended or is cancelled. If the home is sold after that time., the listing agent is entitled to commission for the next 60 days, if the home is sold in that time period.

  • C(4): Seller obligation to pay previous brokers: This line is for sellers who previously had their home on the market with another realtor..

  • D: Items to be included or excluded: Items that are attached to the home are automatically included with the sale. If an item is currently attached to the home and the seller wants to take it with them, then they need to list those items in the excluded section.

  • E(1): Property will be marketed in the following MLS: The Santa Clara County MLS is called MLS listings.

  • F(1): Timing of presentation of offers: We usually review offers within five to seven days after The property is listed on the MLS.

  • F(2): Buyer supplemental offer letters: By default, we don't usually present buyer letters to the sellers. This choice is up to you.

  • F(3): Investigation, reports: We will be ordering these reports on your behalf so that we can sell your home as is.

  • K: Additional terms: This note is in all of my RLAs: Listing agent to pay for staging at the close of escrow. If seller cancels this agreement or does not sell., then sellers pay for the staging.

 

Section 3: Advisories and addenda:  These are other documents that are now attached to this document.

 

The rest of the document includes all of the paragraphs that you can read if you did not understand any of the terms in section 2 above.

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The “Other” supporting documents are Listed below:

 

Multiple Listing Service Addendum (MLSA)(2 Pages):

The California Association of Realtors® (C.A.R.) Multiple Listing Service Addendum (MLSA) is a supplementary document to the Residential Listing Agreement that outlines the terms and conditions for listing a property on the Multiple Listing Service (MLS). It details the advantages of MLS exposure, such as increased visibility to potential buyers, and addresses the risks associated with opting out, including limited market exposure. The MLSA also includes provisions regarding seller concessions, specifying whether the seller authorizes the broker to advertise any concessions in the MLS.

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Seller’s Advisory (SA)(2 Pages):

The California Association of Realtors® (C.A.R.) Seller's Advisory is a comprehensive guide designed to inform property sellers about their rights, responsibilities, and the various aspects involved in a real estate transaction. It emphasizes the importance of full disclosure regarding the property's condition, outlines the seller's duty to provide accurate information, and highlights potential legal and financial implications of the sale. Additionally, the advisory offers insights into market conditions, pricing strategies, and the role of real estate professionals, aiming to equip sellers with the knowledge necessary for a successful and compliant transaction.

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Broker Compensation Advisory (BCA)(2 Pages)

This is a new document as a result of the 2024 National Association of Realtors Class-Action Lawsuit.   The document reiterates what was stated in the Agency Agreement (above).  It talks about how compensation is fully negotiable, what happens if a buyer is unrepresented, and how a broker can legally represent both buyer and seller in a dual agency fashion. As I've stated before, I do not represent buyers as it is a conflict of interest.

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Possible Representation of More Than One Buyer or Seller (PRBS)(1 Page)

This document also reiterates. What was stated in the agency agreement and also in the broker compensation advisory.

The California Association of Realtors® (C.A.R.) "Possible Representation of More Than One Buyer or Seller – Disclosure and Consent" form (PRBS) informs clients that a real estate broker may represent multiple buyers or sellers concurrently. This disclosure ensures transparency about potential conflicts of interest, such as a broker representing both the buyer and seller in the same transaction (dual agency) or multiple buyers interested in the same property. By signing the PRBS, clients acknowledge this possibility and consent to the broker's representation of other parties, provided that the broker maintains impartiality and upholds fiduciary duties to all clients involved. For example, there may be another home in your area Listed by Keller Williams Bay Area Estates. Conversely, there may be two different buyer’s agents placing offers on your property who work for Keller Williams Bay Area Estates.

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The Fair Housing and Discrimination Advisory (FHDA)(2 Pages):

The California Association of Realtors® (C.A.R.) Fair Housing and Discrimination Advisory (Form FHDA) educates parties in real estate transactions about federal and state laws prohibiting discrimination based on protected characteristics such as race, color, religion, sex, national origin, disability, familial status, sexual orientation, gender identity, and others. It emphasizes the commitment to equal housing opportunities and outlines the legal obligations of sellers, landlords, and agents to avoid discriminatory practices. The advisory also provides guidance on recognizing and preventing discrimination, ensuring that all individuals have fair access to housing opportunities. ________________________________________

 

California Consumer Privacy Act Advisory (CCPA)(1 Page):

The California Association of Realtors® (C.A.R.) California Consumer Privacy Act (CCPA) Advisory informs consumers about their privacy rights under the CCPA, effective January 1, 2020. It explains that personal information collected during real estate transactions may be shared with third parties, such as service providers and affiliated businesses, to facilitate the transaction. The advisory outlines consumers' rights to know what personal information is collected, to whom it is disclosed, and the right to request deletion of their personal data. It also emphasizes that not all businesses are subject to the CCPA, but those that must provide a comprehensive privacy policy detailing these rights and how to exercise them. Some examples of personal information might be your address, your name, and how you're holding title. This information may be needed by the title company, the buyer’s agent so they can write their offer, or by anyone doing service on your property.

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Seller Instruction to Exclude Listing from the Multiple Listing Service (SELM):

The California Association of Realtors® (C.A.R.) provides the "Seller Instruction to Exclude Listing from the Multiple Listing Service" (Form SELM) to document a seller's decision to withhold their property from the MLS. This form outlines the implications of such exclusion, including reduced exposure to potential buyers and possible impacts on the property's marketability. It also addresses compliance with MLS rules, such as the National Association of Realtors® Clear Cooperation Policy, which mandates that publicly marketed properties be listed on the MLS within one business day. Obviously, that's not going to happen. So, we just send this form into the MLS with a TBD on the date of marketing.

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Listing Agreement Video

I am in the process up updating the Residential Listing Agreement (RLA) educational video that will walk you through the document and explain it in plain English.  Once you have reviewed the document, and upcoming video, we can get together on the phone, a Zoom call or in person so that I can answer any questions that you may have.  ​

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