Hello, future home seller! If you're planning to put your property on the market, there’s a crucial document you’ll want to get familiar with: the Texas Residential Real Estate Listing Agreement (TXR-1101). This agreement is the official contract that sets out the terms for how your property will be marketed and sold. As your Real Estate Agent, my goal is to help you understand each section of this document so you can confidently move forward with your sale.
Now, before we dive in, let me share a quick update: the real estate industry is continually evolving. This blog is based on the version of the Texas Listing Agreement that took effect in August 2024, along with some recent changes due to rulings by the Department of Justice. As our industry grows, the language of this agreement may continue to change. So, if you’re reading this sometime down the road, feel free to reach out for an update!
Let’s go over each part of the Texas Listing Agreement so you know exactly what to expect and how it all works to protect you as the seller.
1. PARTIES
This section names the official parties in the agreement: you, the Seller, and the Broker who represents you in the sale. Even though you’ll work with me as your Real Estate Agent, I’m technically appointed by the broker. Think of the broker as the “big picture” party responsible for handling the transaction, and I’m here to guide you on all the details.
2. PROPERTY
In this part, we spell out what’s included in the sale of your property, including:
- A. Land: The legal description of the property, such as lot and block details.
- B. Improvements: This covers attached items like the house, garage, ceiling fans, and built-in appliances.
- C. Accessories: Includes items like blinds, control devices, and curtains.
- D. Exclusions: If there’s anything you plan to keep (like a chandelier), we list it here so it’s clear what stays with the property and what doesn’t.
- E. Owners’ Association: We note if your property has a required HOA membership and its details.
3. LISTING PRICE
This is where we agree on the Listing Price, which is the starting price we’ll set to market your property. While it can be adjusted based on feedback, it shows your initial expectations to potential buyers.
4. TERM
- A. This section outlines the start and end dates of the listing, during which the broker has the exclusive right to market and sell your home.
- B. If your property is already under a sale contract when this agreement begins, the listing doesn’t take effect.
5. BROKER COMPENSATION
Here, we explain how the broker gets compensated and when:
- A. Broker’s Fee (with compensation for other broker): Specifies the broker’s total fee and how it’s shared with any other brokers who bring in buyers.
- B. Broker’s Fee (without compensation for other broker): Defines the fee if no other broker is involved.
- C. Earned: Lists situations where the broker’s fee is considered “earned” (for example, if a buyer is found).
- D. Payable: Explains when payment is “payable,” such as at closing or if the seller breaches the agreement.
- E. Other Compensation: Covers any other situations for payment, like if the broker refers a service provider.
- F. Protection Period: Allows the broker to earn a commission if the property sells to someone they introduced during the listing, even after the agreement ends.
- G. County: Indicates where the payment to the broker is made.
- H. Escrow Authorization: Allows an escrow agent to disburse the broker’s payment.
6. LISTING SERVICES
This section outlines how the property will be marketed:
- A. Filing: Indicates whether the property will be filed with the Multiple Listing Service (MLS) and when it will be filed.
- B. Listing Content: Covers ownership of any listing photos, descriptions, or other media, and explains that both you and the broker have rights to the content.
7. ACCESS TO THE PROPERTY
- A. Authorizing Access: Authorizes the broker to access the property and allow others (e.g., buyers’ agents, inspectors) to view it.
- B. Scheduling Companies: States if a third party will be used to schedule showings.
- C. Keybox: Details whether a keybox will be used for easier access during showings, which can help increase viewings.
- D. Liability and Indemnification: Protects the broker and scheduling company from responsibility for property damage or loss during showings, except in cases of negligence.
8. RESERVED
This section is currently not in use.
9. INTERMEDIARY
- A. Intermediary Status: If the broker represents both buyer and seller in a transaction, they act as an “intermediary” to ensure fair treatment for both sides.
- B. No Intermediary Status: Specifies that the broker won’t act as an intermediary if checked.
10. CONFIDENTIAL INFORMATION
This section assures you that any confidential information shared with the broker remains protected, even after the listing agreement ends.
11. BROKER’S AUTHORITY
This part explains what the broker can do:
- B. Allows the listing to be displayed online unless otherwise specified.
- C. Lists acceptable financing options.
- D. Authorizes the broker to advertise, show, and discuss the property terms with potential buyers.
12. SELLER’S REPRESENTATIONS
Here, you confirm certain things about the property, such as your ownership status, any current leases, and whether it complies with local regulations.
13. SELLER’S ADDITIONAL PROMISES
This section lays out your responsibilities, such as making the property available for showings and avoiding direct negotiations with potential buyers.
14. LIMITATION OF LIABILITY
Selling a home has risks, and this clause limits the broker’s liability for risks outside their control, like third-party actions or natural incidents.
15. SPECIAL PROVISIONS
This allows for any unique terms not covered elsewhere in the agreement.
16. DEFAULT
Explains what happens if either party doesn’t uphold their responsibilities, helping to prevent or resolve any issues that might arise.
17. MEDIATION
If a dispute arises, this section requires both parties to attempt mediation before heading to court, which can save time and money.
18. ATTORNEY’S FEES
The prevailing party in any legal dispute related to the agreement can recover attorney’s fees, encouraging fair treatment from both sides.
19. ADDENDA AND OTHER DOCUMENTS
This lists additional documents that may be required, like HOA info or lead-based paint disclosures for older homes, to avoid any delays in the sale.
20. AGREEMENT OF PARTIES
- A. Entire Agreement: Confirms that this agreement is the full understanding between the broker and seller.
- B. Assignability: States that neither party can transfer the agreement without written consent.
- C. Binding Effect: Ensures that the seller’s payment obligation applies to heirs, administrators, and others.
- D. Joint and Several: All sellers signing this agreement are equally responsible for its terms.
- E. Governing Law: States that Texas law applies.
- F. Severability: If any clause is found invalid, the rest of the agreement stays enforceable.
- G. Notices: Requires written notices for communication.
21. ADDITIONAL NOTICES
This final section includes reminders about fair housing laws, property security, and lead-based paint disclosures for homes built before 1978, ensuring the property is compliant with all relevant laws.
Wrapping It Up
The Texas Listing Agreement might seem like a lot to digest, but each section serves to protect you and make our partnership as clear and efficient as possible. By understanding each part, you’re setting the stage for a successful home sale with confidence and peace of mind. If you have any questions along the way, I’m here to help!
Ready to Sell? Let’s Get Started!
Understanding the Texas Listing Agreement is a big step toward a successful home sale, and I'm here to make sure you’re confident and prepared every step of the way. If you’re ready to take the next step in selling your home, or if you have any questions about this agreement or the selling process, don’t hesitate to reach out.
Let’s talk about your goals, discuss the market, and create a plan tailored to you. Together, we’ll make this experience smooth, transparent, and rewarding. Contact me today, and let’s turn your real estate dreams into reality!
