6.11 The Listing/Management Commission Agreement

State real estate laws require that a compensation agreement be in writing and signed by the party to be charged in order to be enforceable. If you represent a buyer in a for-sale-by-owner (FSBO) transaction and the buyer is to pay a commission, you must have a written agreement with the buyer to pay that commission, such as a buyer-broker agreement.

If the seller has not signed or will not sign a listing agreement and if the seller is to pay the commission, you must have a written agreement with the seller such as a single party compensation agreement.

Unless approved in advance by your Manager, all residential, commercial, property management and lease listings will be “Exclusive Authorization Right to Sell” listings. All listing and management agreements will be taken on the most current STATE ASSOCIATION OF REALTORS® Standard Forms, AIR CRE forms (commercial only) or another form approved by the Broker such as custom drafted Letters of Intent (LOI).