In real estate, when a buyer wants to purchase a property, they put a contract on it so that no one else can buy the property out from under them, and so that the terms of purchase are clear to both the buyer and the seller. The contract is an essential part of the deal.

If you are the broker/agent, you, too, should have a contract with the buyer/seller that spells out the terms of your commission.

Broker/agents work with two types of listings in general – open and exclusive.

  • Open Listing: The seller gives the listing to everyone they choose to in real estate.
  • Exclusive Listing: The seller designates a particular individual as the “go to person” in charge of selling their property.