What is a Listing Agreement?
Once a landowner decides to work with Wingert Land Services, Minnesota law requires that we put that working relationship in writing. That document is called a listing agreement and it is worth understanding what goes into it before you sign.
The Purpose of a Listing Agreement
A listing agreement lays the groundwork for the transaction that follows by doing the following:
- Defining agent responsibilities: A listing agreement outlines how the broker will promote, list, and negotiate the sale of the property.
- Setting terms and conditions: The agreement establishes the listing price, commission structure, and length of the contract.
- Providing legal protection: Both the landowner and the broker are protected by summarizing expectations and what happens if either side does not hold up their end of the agreement.
Who It Defines
A listing agreement first identifies the parties involved. That means naming the landowner, whether the property is held by an individual, multiple individuals, or a trust, along with Wingert Land Services as the broker. Getting these right matters since it establishes exactly who has the authority to make decisions about the sale.
What It Covers
The agreement lays out the terms of the sale. This includes the price, whether that is a set listing price or a reserve price for an auction format, and the duration of the contract. It gives us permission to publicly market the property, covering things like listing it online and taking aerial photos to show the land at its best. Minnesota also requires certain statutory language to be included in every listing agreement.
Finalizing Your Listing Agreement
A listing agreement sets the terms for a smooth path from listing to closing. Reviewing the fine print and negotiating terms that fit your situation are worth the time and working with a knowledgeable land professional helps you understand what you are agreeing to before you sign.
The Bottom Line
There are a lot of moving parts, but a listing agreement outlines everything in simple terms. It defines who we are, what we are selling, and the terms we are working under so that everyone involved has clarity on what we are looking to accomplish together before marketing begins.
If you are considering selling land and want to understand how a listing agreement would work for your property, we would be glad to visit with you.