The Exclusive Right of Sale Listing Agreement is the most widely accepted and used type of listing agreement for residential property in Florida.
The Exclusive Right of Sale Listing Agreement gives the brokerage the exclusive right to list the home on the MLS, and represent the homeowner in the sale of the home. The agreement details the listing price, commission, and other responsibilities of the broker and the seller. The length of the agreement cannot be for more than one-year but extensions and price changes can be made at anytime in writing as addendum’s to the original listing agreement.
The home can be sold by the listing broker directly or with another cooperating brokerage company bringing the buyer (this is the power of the MLS which allows other brokers to find and sell your home). If a cooperating broker brings the buyer to the table, the seller pays the total commission agreed to and the listing broker pays the cooperating broker part (usually half) of his commission. If the listing broker sells the home on his own, he retains the entire commission agreed to in the listing agreement.
If the home owner finds a prospective buyer, he should have them contact the listing agent and the listing agent is still paid the commission according to the agreement.
If the home is not sold or the listing expires without being renewed, the commission goes unpaid and the listing broker is out any expenses incurred to market the home.
Some stipulations may apply. Check the written terms of your listing agreement and if you have any concerns, contact a licensed real estate attorney for advice.