Tar Forms Listing Agreement: What You Need to Know
When it comes to real estate, there are many legal documents involved. One of the most important is the listing agreement, which lays out the terms of the relationship between a seller and their real estate agent. In Texas, the Texas Association of Realtors (TAR) provides a standard listing agreement, known as the TAR Forms Listing Agreement. Here`s what you need to know about this important document.
What is the TAR Forms Listing Agreement?
The TAR Forms Listing Agreement is a standard document used by real estate agents and sellers in the state of Texas. It outlines the terms of the relationship between the seller and their agent, including the listing price, the commission rate, and the length of the agreement. It`s important for both parties to understand the terms of the agreement before signing, as it is a legally binding contract.
What are the key terms of the TAR Forms Listing Agreement?
The TAR Forms Listing Agreement includes a number of key terms that both the seller and agent should be aware of. Here are some of the most important:
– Listing price: This is the price at which the seller is offering their property for sale. The agent will use this price to market the property and attract potential buyers.
– Commission rate: This is the percentage of the sale price that the agent will receive as commission. The rate is negotiable, but is typically around 6%.
– Length of the agreement: This is the period of time during which the agent has the exclusive right to sell the property. The length of the agreement is also negotiable, but is typically between 90 and 180 days.
– Marketing plan: The agent is responsible for marketing the property to potential buyers. The listing agreement should include details of the agent`s marketing plan, including how the property will be advertised, how showings will be arranged, and how offers will be handled.
What are the benefits of using the TAR Forms Listing Agreement?
There are a number of benefits to using the TAR Forms Listing Agreement. First, it provides a standard framework for the relationship between the seller and agent, which can help to avoid misunderstandings and disputes. Second, because the agreement is widely used in Texas, both parties can feel confident that the terms are fair and reasonable. Finally, the TAR Forms Listing Agreement is regularly updated to reflect changes in real estate law and practice, so sellers and agents can be sure that the document is up-to-date and legally binding.
Conclusion
If you`re selling a property in Texas, it`s important to understand the terms of the TAR Forms Listing Agreement. This document lays out the terms of the relationship between the seller and their real estate agent, including the listing price, commission rate, and length of the agreement. By using the TAR Forms Listing Agreement, both parties can feel confident that the terms are fair and reasonable, and that the document is legally binding.
