Listing Agreements Explained: Length, Cancelling and Exclusive Right to Sell in Virginia

What You're Signing When You List

A listing agreement is the contract between you and the brokerage that will market and sell your home. It spells out the price you'll list at, how long the agreement lasts, how the brokerage is paid, what services you'll receive and what happens in different situations.

Sellers often sign without reading it closely. I'd rather you understand every line before you commit, so here's a plain-English overview. I go through the agreement with every seller I work with before they sign.

Common Types of Listing Agreements

Exclusive right to sell. The most common type. One brokerage represents you, and the brokerage is typically paid if the home sells during the agreement, no matter who finds the buyer.

Exclusive agency. One brokerage lists the home, but if you find the buyer yourself, you may not owe that brokerage the listing side of the fee, depending on the terms.

Open listing. Multiple agents can try to sell the home, and only the one who brings the buyer is paid. These are less common for typical homes.

How Long Listing Agreements Last

Virginia generally requires a residential listing agreement to have a definite end date. Length is negotiable. Many run a few months, which gives enough time to prepare, market, negotiate and get under contract. Very short terms can leave too little time if you hit a slow stretch; very long ones can lock you in if things aren't working.

If your home goes under contract, the agreement typically covers you through closing.

Commission and Compensation

The agreement spells out how the brokerage is paid and whether, and how, any compensation is offered to a buyer's brokerage. These amounts are negotiable and can vary. On the standard Hampton Roads form, the fee can be a percentage of the price or a flat amount, it's paid at settlement, and additional compensation can apply if the buyer has no agent of their own. The listing firm also can't pay or offer compensation to a buyer's agent unless that's disclosed to you in writing ahead of time and you approve it.

Ask your agent to explain exactly how it's written. My guide to what it costs to sell a house in Virginia explains the other costs to expect. Fee structures differ between brokerages; see Redfin vs. a local listing agent for how one discount model compares.

Can You Cancel a Listing Agreement?

It depends on what the agreement says. Some brokerages will release a seller who's unhappy, sometimes with conditions; others hold to the full term. Look for how cancellation works, whether there are fees, and whether there's a protection period, which can make you responsible for a fee if you sell to a buyer who saw the home during the listing after it ends.

If something isn't working, start with an honest conversation with your agent and their managing broker. If you need legal guidance about a contract, a real estate attorney can help.

Your Listing Agent's Duties and Dual Agency

The standard exclusive right to sell agreement makes the listing firm your "standard agent" under Virginia law. That means duties to market the home, negotiate for you, keep your information confidential, account for any money handled and disclose material facts. The firm also has to tell buyers about known material physical defects, which is one more reason to be upfront in your disclosures.

The agreement also asks whether you consent to dual agency, where the firm represents both you and the buyer, and whether designated agents can be used. You decide, and the form explains what changes in each case.

Your listing agreement is the first document in a stack. My guide to the documents you'll sign selling a home in Virginia walks through the rest, from disclosures and what goes into your MLS listing to the purchase agreement.

Other Terms to Read Closely

List price and how changes are made. What's included in marketing. Showing instructions and lockbox permission. Items that do or don't convey. Disclosures you'll provide (see Virginia seller disclosures). Any withdrawn or off-market terms.

Questions to Ask Before You Sign

How long is the term, and why? How does cancellation work? Is there a protection period? How is compensation structured? What exactly will you do to market the home? How will offers be presented? For more on picking the right person, see how to choose a listing agent.

Let's Walk Through It Together

I'll explain every part of my listing agreement before you sign, so there are no surprises. Reach out to me or see my listing agent page.

This article is general information, not legal, tax or financial advice. Contracts, laws and loan rules vary by situation and change over time, so confirm your specifics with a Virginia real estate attorney, your lender or a tax professional.