Key Takeaways
- Protection periods should be 60 days maximum with a named buyer list—standard 180-day clauses create double-commission exposure.
- Limit exclusive agreements: 90-day duration, specific geographic scope, defined property types, and a 14-day termination clause.
- Watch for hidden fees: administrative fees, marketing cost recovery, early cancellation fees, and referral fee add-ons.
- Every provision in a listing or buyer agreement is negotiable—an agent who says otherwise is either misinformed or self-serving.
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Test Your Knowledge
1.What is the most common listing agreement trap for investors?
2.What is an automatic renewal clause and why is it risky?
3.How can investors protect against unfavorable listing agreement terms?