Members of the Minnesota Association of REALTORS® have asked why there is no Nonexclusive Right to Sell Listing Contract, since there is a Contract for Nonexclusive Right to Represent Buyer. There are several reasons why this form has not been adopted by MNAR, with the two main reasons being MLS and the Code of Ethics.
Multiple Listing Service
REALTORS® through the years, have built and maintained a Multiple Listing Service that provides the foundation for an industry where cooperation amongst competitors is crucial for maximizing our clients’ financial position in a real estate transaction. Offers of compensation through the MLS are unilateral and binding. That is one of the reasons why MLS policy requires an exclusive representation contract with the seller. The contract can be an Exclusive Right to Sell or Lease the property or an Exclusive Facilitator Services Agreement. The reason for the “exclusive” representation is for coordination with other brokerages through the MLS system. If non- exclusive listings were placed on the MLS, a home could be listed 3, 4, 5 or more times all by different listing companies. Price change issues, co-op compensation, multiple for sale signs and arranging showings are just a few of the concerns that would arise from having Multiple Listing Companies working as nonexclusive agents of the seller.
A Multiple Listing Service does not regulate the type of listings its members may take, but it also does not mean that an MLS must accept every type of listing. Under the NAR guidelines, a multiple listing service shall decline to accept open listings (non-exclusive listings) and net listings.
There are other things to consider with a nonexclusive listing. An agent may not be as willing to invest time and resources on marketing a nonexclusive listing, since there is no guarantee they will be compensated. Not having the property listed in a Multiple Listing Service may also be a disadvantage to the seller.
Some brokerages may have a policy of not accepting nonexclusive listings. Be sure to check with your broker to see if this practice is allowed.
The best course of action in a nonexclusive listing situation is to have your attorney draft a form for your brokerage to use. You may also consider using the Seller Facilitator Services Agreement, which allows the seller and the licensee to agree to the services that will be performed in listing the property.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry in Minnesota.