Key takeaways
- A listing agreement authorizes a brokerage to market your property and sets out services, terms, and compensation.
- In Texas, an agreement to pay a real estate commission generally must be in writing and signed to be enforceable.
- Compensation is negotiable. Since 2024, offers of compensation to buyers’ brokers are not published in the MLS. They’re handled through negotiation instead.
- Read the listing period, cancellation terms, and protection period carefully.
- You remain responsible for truthful disclosures about your property.
What a listing agreement is
A listing agreement, sometimes called a seller representation agreement, is a written contract between you and a real estate brokerage. It gives the broker the right to market your property and represent you in the sale, and it spells out what each side will do. In Texas, it’s with the broker, the brokerage, even though you’ll work day to day with an agent.
Unlike the purchase contract, listing agreements aren’t promulgated by the Texas Real Estate Commission. Many brokerages use forms published by Texas REALTORS®, while others use their own. Either way, read the document itself, not just a summary.
What a listing agreement typically covers
| Term | What to look for |
|---|---|
| Listing period | Start and end dates, and whether it renews |
| List price | The price you authorize, and how changes are made |
| Services | What the brokerage will do: marketing, photography, showings, negotiation |
| Exclusivity | Whether it’s an exclusive right to sell |
| Compensation | The amount or rate, when it’s earned, and when it’s paid |
| Buyer-broker compensation | Whether you authorize any offer to a buyer’s broker, and how |
| Protection period | Whether you may owe compensation if you sell to someone introduced during the listing after it ends |
| Exclusions | Any buyers excluded from the agreement, such as a relative already interested |
| Access and showings | Lockbox, showing instructions, and security |
| Cancellation | How either side can end the agreement early, and any costs |
| Dispute resolution | Mediation or other procedures |
How compensation works
Brokerage compensation isn’t set by law. It’s negotiated and written into your agreement. Texas law generally requires an agreement to pay a real estate commission to be in writing and signed by the person who will pay it.
Buyer’s broker compensation
Since August 2024, under practice changes following a national settlement involving the National Association of REALTORS®, offers of compensation to buyers’ brokers can’t be published in the MLS. You can still choose to contribute toward a buyer’s broker’s compensation. That’s typically negotiated off the MLS or requested by the buyer in the purchase contract, which now has its own section for it. Your listing agent should explain your options and get your consent before any offer of compensation is made.
Clever Realtors’ fee: Our listing commission is 1.5% for listing-side services. Any buyer-agent compensation you agree to and other closing costs are separate. Your listing agreement states exactly what you’ll pay.
Intermediary consent
Listing agreements often address what happens if a buyer represented by the same brokerage wants to buy your home. Texas allows the broker to act as an intermediary only with written consent from both parties. Read this section, and ask how your brokerage handles it.
Your disclosure duties as a seller
- Seller’s Disclosure Notice: most sellers of single-family residential property in Texas must give buyers a disclosure about the property’s condition under Texas Property Code §5.008. Some sales are exempt.
- Lead-based paint: federal law requires a disclosure for homes built before 1978.
- HOA and special districts: notices may be required if your property is in a property owners’ association or a utility or improvement district.
Fill out disclosures truthfully and completely, based on what you know. Your agent can explain the forms but can’t fill them out for you or give legal advice.
Before you sign: review checklist
For your own planning. Checking items doesn’t send anything to Clever Realtors.
Watch: Understanding the listing agreement
Frequently asked questions
How long does a listing agreement last?
It’s negotiated. The agreement states a start and end date. Choose a period that gives enough time to prepare, market, and close, and understand how to end it early if needed.
Can I cancel a listing agreement?
Review the cancellation terms before you sign. Some agreements allow cancellation under certain conditions or with costs. Ask your broker how they handle it.
Do I have to offer compensation to the buyer’s agent?
No. It’s your decision, made with your listing broker. Buyers may still ask you to contribute in their offer, and you can negotiate.
What is a protection period?
A clause that may require you to pay compensation if, after the listing ends, you sell to someone who learned about the property during the listing. Read the exact terms.
Is the Seller’s Disclosure Notice part of the listing agreement?
No. It’s a separate disclosure to buyers about your property’s condition. Many sellers complete it around the time they list so it’s ready for interested buyers.
Sources and further reading
- Texas REALTORS® — Listing agreements FAQ
- National Association of REALTORS® — What the settlement means for buyers and sellers
- Texas Occupations Code, Chapter 1101
- TREC — Seller’s Disclosure Notice
- TREC — What is an intermediary?
This article is general information about Texas real estate practice, not legal advice. Listing agreement forms vary. Read yours carefully and consult a Texas real estate attorney with legal questions.
