Real Estate Listing Agreement (Non-Exclusive)

Overview

A real estate listing agreement is the contract between a property owner (the seller) and a real estate broker authorizing the broker to market and help sell the property, and setting out how the broker will be compensated. Unlike most of the templates in this catalogue, this is not a generic commercial agreement: acting as a real estate broker or agent in the United States requires a state real estate license, and there is no national broker license — each state (and sometimes each locality) issues, regulates and disciplines its own brokers through its own real estate commission or department of licensing. This template is a general-purpose drafting aid and does not replace the state-specific listing agreement forms that many state or local Realtor associations and Multiple Listing Services (MLS) require or strongly recommend their members use. Non-exclusive vs. exclusive: this template covers a NON-EXCLUSIVE, non-agency ("open") listing, meaning the seller may list the same property with multiple brokers simultaneously (or sell it themselves without owing a commission), and only the broker who actually procures a ready, willing and able buyer earns the commission. This is different from an EXCLUSIVE RIGHT TO SELL listing (the most common form used with MLS-affiliated brokers), where the broker earns the commission regardless of who finds the buyer, including the seller. Confirm with the broker which form of listing is actually being offered, since the commercial and legal effect is materially different, and many brokers and MLS systems only accept exclusive listings. Commission structure: real estate commissions in the US are negotiable by law and are not fixed by any national or state schedule — typical residential commission rates historically clustered around 5-6% of the sale price split between listing and buyer's agents, but following the 2024 National Association of Realtors (NAR) settlement, buyer-broker compensation practices and MLS cooperative compensation offers have changed materially and vary by state, MLS and brokerage; confirm current practice with the broker and do not assume any percentage. State law may also require specific disclosures about commission negotiability directly in the agreement. MLS and listing period: if the property is to be listed on the local MLS, additional MLS rules (data entry, photo requirements, cooperative compensation disclosures) will apply on top of this agreement and are set by the local MLS/board, not standardized nationally. The listing period (start and end dates) should be clearly stated, along with what happens after expiration (whether a protection/tail period applies to buyers the broker introduced during the listing). Fair housing: all real estate marketing and showing activity is subject to the federal Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability, on top of any additional protected classes recognized under the governing state's or city's own fair housing laws (which are often broader, e.g. covering source of income or sexual orientation/gender identity in many states). When to use: for a seller who wants to retain flexibility to work with more than one broker (or sell independently) rather than commit to a single exclusive broker. Common pitfalls: not confirming whether the broker actually requires an exclusive listing to accept the property (many will not take open listings); vague commission terms; and not checking the broker's state license status. This template must be reviewed against {{governing_state}} real estate licensing law and any applicable MLS/board rules before use, and is not a substitute for state-mandated listing agreement forms where those are required.

Information to customize

• Seller's name

• Broker's name and license number

• Governing state (property location and applicable licensing law)

• Property address

• Property description (type, key features)

• Asking price

• Commission (rate or amount, and when it becomes due)

• Listing start date

• Listing end date

• Post-expiration protection/tail period, if any

• Whether the property will be listed on the MLS

• Date of this agreement

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Frequently asked questions

What is the difference between a non-exclusive and an exclusive listing?

In a non-exclusive (open) listing, the seller can work with multiple brokers and only owes a commission to whichever broker actually procures the buyer. In an exclusive right-to-sell listing, the named broker earns the commission regardless of who finds the buyer, including the seller. Most MLS-affiliated brokers require exclusive listings.

Are real estate commissions fixed by law?

No. Commission rates are freely negotiable between seller and broker in every state, and are not set by any national or state schedule. Confirm current market practice with the broker, especially since buyer-broker compensation practices have changed materially following the 2024 NAR settlement.

Does this template replace my state's official listing agreement form?

It may not. Many state and local Realtor associations require or strongly recommend brokers use standardized state-specific forms, particularly for MLS-affiliated exclusive listings. Check with the broker and the local MLS/board before relying solely on this template.

Can anyone act as a real estate broker under this agreement?

No. Real estate brokers must hold a valid license issued by the state where the property is located — there is no national broker license. Verify the broker's license status with the {{governing_state}} real estate licensing authority.

What happens if the listing expires without a sale?

The agreement ends on the stated listing end date. If a protection/tail period is included, the broker may still be owed a commission for a limited time after expiration if the sale is to a buyer the broker introduced during the listing period.

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