Types of listing & methods of sale

Study notes

The practical mechanics of winning and conducting a sale: the types of listing an owner can grant, the CEA-prescribed agency agreements that govern them, and the three methods of sale — each with a different moment of binding.

What you must know

• Open listing: any number of agents may market the property; commission goes to the agent who produces the buyer.
• Exclusive (or sole) listing: one agency markets it for a fixed term (commonly about 3 months), with an agreed marketing plan and renewal terms.
• The estate agency agreement must be in writing on a CEA-prescribed form, signed before work begins, and state the commission — no agreement, no commission claim.
• Private treaty: negotiated offer and acceptance — binding on acceptance of the offer (commonly by exercising an option).
• Auction: the contract binds on the fall of the hammer to the highest bidder above reserve.
• Tender: sealed bids opened at the close; the vendor may then negotiate — the vendor is not bound to accept any bid.
• Commission recovery requires effective cause plus the written agreement — the section’s recurring pairing.