When you employ a real estate licensee in the sale of your home you will be asked to sign a listing agreement in which you will agree to pay a certain amount of money, known as a brokerage fee or commission, upon the sale of your home for the services provided.
When you sign the listing agreement, you are employing the licensee to act as a seller limited agent in the sale of your home. The listing agreement is actually a contractual agreement between you, the seller, and the designated or employing broker for the real estate company with whom the licensee is affiliated.
The specific licensee with whom you are working is an affiliated liscensee of the broker for that company. It should be noted here that the listing agreement puts the broker and the 'listing' licensee in your 'employ.'
Since the listing agreement is a legally binding contract that you are signing, it is the utmost importance that you read and understand all the provisions included before you sign the listing agreement. If you do not understand them, you should seek legal advice.
Another point that should be emphasized here is that all contracts, agreements and changes in them should be in writing so that the provisions are clear to all parties involved in the transaction and so that all matters in the transaction are documented.There are several types of listing agreements into which you can enter.