As a real estate professional, you have probably come across the term “implied listing agreement” at some point. But what exactly does it mean, and how does it differ from a traditional listing agreement? In this article, we`ll define an implied listing agreement and discuss its significance in the real estate industry.
An implied listing agreement is a type of real estate agreement that is not put in writing or signed by the parties involved. Instead, it is inferred from the actions and behaviors of the parties. For example, if a seller hires a real estate agent to show their property to potential buyers, this can be seen as an implied agreement to work together.
Because it is not a traditional written contract, an implied listing agreement can be more difficult to prove in court if there is a dispute between the parties. However, it is still legally binding and can be enforced as long as the terms of the agreement can be proven.
In some cases, an implied listing agreement can arise unintentionally. For example, if a real estate agent shows a property to a potential buyer without the seller`s knowledge or consent, this can still be seen as an implied agreement between the parties. In this situation, the agent may be entitled to a commission if the buyer ultimately purchases the property.
It`s worth noting that an implied listing agreement can be risky for both parties involved. Without a written agreement, it can be difficult to determine the terms of the agreement and what each party is responsible for. If you are a seller, it`s important to have a written agreement with your real estate agent to ensure that you are both on the same page.
In conclusion, an implied listing agreement is a real estate agreement that is inferred from the actions of the parties involved. While it can be legally binding, it is generally recommended to have a traditional written listing agreement to ensure that both parties have a clear understanding of the terms of the agreement. As a real estate professional, it`s important to be familiar with the concept of implied listing agreements and to educate your clients accordingly.