Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.

• Open Listing:  Owners can sell their home themselves under the terms of this non-exclusive agreement. Owners may have listings with more than one brokerage. Commission is paid to the agency who is the procuring cause  for a ready, willing and able buyer who makes an offer on the property.  Should the owners find the buyer themselves, no commission is due;
• Exclusive Agency Listing: The broker will be the only brokerage representing the owner, but the owner may still sell the property themselves and avoid paying commission under the terms of that provision. The broker may cooperate with other brokerages to bring in a buyer and the listing commission is split between the two brokerages. Exceptions and deadlines may be included in the agreement;
• Multiple Agencies Listing:  When a seller uses more than one brokerage to list their home, the listing agreement used must be for the jurisdiction where the property is located;
• Single Agent Buy & Sell Transaction: This is different than Dual Agency, where the agent represents both the buyer and seller of the same property. In this model, sellers of a home purchasing their next home also hire their listing agent as their buyer agent;
• Designated Agent: Two agents affiliated with the same brokerage represent the property owner and the buyer of the property. Each agent is designated by the brokerage as the representative of one party only;
• Dual Agency: Single agent representing both the property owner and the buyer of the same property.

KEY COMPONENTS

• Jurisdiction
• Type of agreement
• Length of agreement
• Listing price
• Compensation
• Private Exclusive, public MLS or hybrid
• Keys, lockboxes & signage
• Inclusions/Exclusions
• Property condition statement
• Property disclosure of material facts
• Lead paint disclosures
• Pest Inspection terms
• Encumbrances/Liens/Title
• Authority to disclose existing offers

“Office Exclusive Listing” is an exception where a seller allows a brokerage to market a property within their own brokerage. It is not listed on the MLS for wider access, but must still be entered into the MLS system.

Bright MLS, the DVM’s area multiple listing service, provides that the following forms must be completed for Office Exclusive Listings:

• Bright MLS Office Exclusive Entry Form: This form is required for all Office Exclusive listings.
• Bright MLS Client Disclosure Form: This form is required for all clients starting August 14, 2024

The listing must be submitted to Bright within two calendar days of the executed listing agreement.

The listing broker or agent can still cooperate with other brokers who present a buyer.

Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.

ON MLS

COMING SOON

• Entered for purposes of cooperation
• No showings during a current, specified time-period
• No agreement of sale in effect
• Listing will be on-market soon
• If the lister receives an offer while property is in this status, it must be presented to the Seller

ACTIVE

• Showings allowed
• The listing on-market, no written offer accepted
• DOM starts at “1”
• CDOM count based on previous activity

ACTIVE UNDER CONTRACT

• Listing has an accepted contract
• Seller is allowing showings and accepting backup offers
• DOM/CDOM does not accumulate.

PENDING

• Listing has an accepted contract
• Seller not accepting additional showings or backup offers
• DOM/CDOM does not accumulate

CLOSED

• Settlement has concluded
• DOM/CDOM has stopped and reset

TEMPOFF

• Seller temporarily suspended showings
• Listing contract between broker and Seller remains in effect
• DOM/CDOM is paused and will not reset on or after the 61st day.

WITHDRAWN

• Marketing ceased, Listing Agreement still in effect
• DOM/CDOM will reset when a new listing is added after the previous listing has been in Withdrawn status for at least 61 days and no other listing for the same property has been created.

CANCELED

• Seller and listing broker have terminated the Listing Agreement prior to its expiration date. 
• DOM/CDOM has stopped and will reset on or after the 61st day.

EXPIRED

• The expiration date on the Listing Agreement has passed and an extension has not been secured
• DOM/CDOM has stopped and will reset when re-listed on or after the 61st day.

Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.

It is a real estate agency relationship between a a buyer principal and real estate brokerage, designating a licensed real estate agent to perform specified duties for the buyer.

The buyer agency agreement (BAA), is a contractual agreement between the buyer and brokerage designating the buyer’s chosen agent, dictating the provisions, terms and conditions of their working relationship and the agreement for broker compensation and fees.

Buyer Agency protects buyers and ensures that their agent works in their best interests–not the seller’s–providing the duties of loyalty, care, confidentiality and other fiduciary duties. Agents who are not acting as buyer agents are effectively subagents of the seller.

A written agreement between the buyer and brokerage must be signed prior to an agent performing work on behalf of a buyer, including touring of properties. Agents may require an agreement sooner, prior to performing any substantive work. An agency agreement converts a ‘customer’ to a ‘client’ and triggers duties and obligations by both the brokerage/agent and the buyer/seller.

Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.

• Single Agency: An agent from brokerage A represents the seller and another agent from brokerage B represents the buyer in a transaction
• Single Agent Buy & Sell Transaction: The same brokerage and agent are hired to represent a party who is buying and selling property
• Multiple Agents: As a buyer, you can choose to have one agent or multiple agents representing you in one jurisdiction, or more. For example, a buyer might hire one agent for representation in Virginia, another for representation in DC, and a third for representation in Maryland. Agents are licensed in different jurisdictions and not all agents are expert in all markets within the DCMA. A buyer could also hire multiple brokerages for representation within the same market. This arrangement can become a complex situation requiring extensive communication, coordination and disclosure. Overlapping neighborhood boundaries can become an issue, and scheduling showings/tours can become a logistical problem, especially if agents are affiliated with different brokerages.  This can lead to disputes, ‘procuring cause’ claims, and violations of agreements that may result in agents taking action against one another and/or the buyer
• Transaction Agents: These agents do not owe a fiduciary duty to either the buyer or the seller and do not represent either side. Instead, they facilitate a transaction by providing the paperwork for one or both sides and managing the transaction in the most basic manner, with duties specified in the agreement
• DualAgency:”Dual Representation” occurs when Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with the same licensee. When the parties agree to dual representation, the ability of the licensee and the brokerage firm to represent either party fully and exclusively is limited. The confidentiality of all clients must be maintained. Prior to entering into a contract in which the buyer and seller are represented by Dual Agency, this relationship must be disclosed/confirmed in writing. The Isaacs Team LLC does not practice Dual Agency
• Designated Agent: Agent who is designated by the broker to represent either the buyer or the seller in a dual agency transaction. “Designated Representation” occurs when the Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with a different licensee affiliated with the same firm. Each of the licensees, known as Designated Representatives, represents fully the interest of his/her individual clients. The Supervising Broker is a Dual Representative of both the Buyer and Seller, and must not disclose information obtained in confidence to other parties in the transaction.

Notes on Designation:

• If the Seller or Landlord does not consent to Designated Representation, the property may not be shown by any licensees affiliated with the brokerage firm that have entered into a representation agreement with a prospective Buyer or Tenant.
• If the Buyer does not consent to Designated Agency, the Buyer may not be shown any properties listed by other licensees affiliated with the brokerage firm. Prior to entering into a contract in which the buyer and seller are represented by Designated Representatives, the relationship of both Designated Agents must be disclosed/confirmed in writing.