Washington Exclusive Right to Sell Listing Agreement (Form 1A)

NWMLS Form 1A is the Exclusive Sale and Listing Agreement, commonly described as an exclusive right to sell listing agreement. It is the contract between a home seller and a real estate firm that sets the terms for representing the seller and marketing the property.

In our experience, sellers usually are not shocked by the listing agreement. The important conversation is about when to sign, whether the terms work for both sides and whether we want to work together. We should agree on those things before we make the commitment to prepare and promote your home.

When should you sign the listing agreement?

we want us to understand the plan before we sign. That means discussing your goals, your timing, the proposed price, the work needed to prepare the property and the services we will provide. The agreement should reflect the relationship we have actually discussed.

Washington law requires a written services agreement for seller representation. RCW 18.86.020 addresses the agreement’s term, appointed broker, exclusivity and agency choices. Read the current document and any additional terms before signing; a general explanation cannot replace the terms of your own agreement.

Signing the listing agreement and launching the property are separate steps. We should also decide the preparation schedule and launch approach. A signed listing agreement should not be treated as permission to disregard applicable NWMLS marketing rules.

Why we recommend a six-month listing term

Our usual recommendation is six months. We would love every home to sell in its first week, but that is not how every transaction works. The agreement needs to give us enough time to prepare the home, get it in front of buyers, evaluate the response and work through the selling process.

When we take a listing, we make a substantial commitment. We can spend thousands of dollars on presentation and promotion before a sale closes. Because we are investing time, attention and money, we want the seller making a comparable commitment to working with us.

That does not mean we plan to wait six months to produce results. It means we are choosing a term that gives the relationship room to work. The actual selling timeline depends on the property, price, condition, location and market response. Six months is our preferred agreement length, not a legal minimum or a prediction of your sale date.

we rarely recommend a longer or shorter term. Occasionally, we will consider a shorter agreement when the seller has a strong reason. In those cases, we need to discuss the investment we are making and any understanding about working together again if the home is taken off the market and relisted later. Any agreed future commitment or reimbursement provision needs to be documented; it should not be assumed.

What does exclusive right to sell mean?

An exclusive listing gives the firm the exclusive right to market the property under the agreement. Finding a buyer yourself does not necessarily avoid the agreed compensation. Review the actual earning and payment provisions, any exclusions and any obligations that may continue after the listing expires.

Ask about a buyer you already know before you sign. A friend, relative or neighbor who might purchase the property can affect the conversation. Any agreed exception belongs in the written terms, rather than an assumption that everyone will sort it out later.

The listing agreement is also separate from a buyer’s purchase offer. You are hiring a firm to represent you. A later purchase and sale agreement addresses a particular buyer’s price, financing, inspections, closing and other negotiated terms.

Our services and proposed compensation

We are a full-service listing brokerage. we want the seller to understand the presentation and promotion plan, the work our team will take on and the fee we are proposing. Then the seller can decide whether the service and terms are a good fit.

Compensation is an agreed-upon fee. We generally come to the conversation with a proposed amount based on the service we are offering. That proposal is not a fee set by law or a required rate shared by the industry. The seller and firm must agree on the compensation terms.

Under Washington’s compensation statute, a services agreement must address the agreed compensation and relevant consents. Ask what is included in the proposed fee, when it is earned and payable, and whether the agreement creates any separate expense obligations.

The seller chooses the buyer-broker compensation approach

Your agreement with the listing firm and a contribution toward the buyer’s brokerage are decisions that need clear explanations. Do not assume one automatically settles the other.

NWMLS explains three seller choices:

• Offer a specific amount of compensation to the buyer’s brokerage.
• Offer no compensation to the buyer’s brokerage.
• Invite the buyer to request an amount in the purchase offer, then consider or negotiate that request.

The seller controls that choice. We can explain the options and review the terms presented in an offer, while the seller decides what to authorize. An initial choice does not mean every later request has already been accepted.

In our experience, most sellers we work with choose to contribute some compensation toward the buyer’s broker. That is an observation from our work, not a requirement or a market-wide percentage. Your decision belongs in your own listing and transaction documents.

What if your plans change?

Talk with the firm if you need to pause, change the plan or end the relationship. Review the agreement before assuming that withdrawing the property or reaching the expiration date removes every obligation.

RCW 18.86.070 distinguishes ending an agency relationship from the parties’ contractual rights. Get agreed changes or a release in writing. If there is a dispute about what the contract requires, have an attorney review the agreement.

Video: Listing agreement explained

Use the video for background. Review the current form and the specific terms proposed for your sale with your broker.

Listing agreement questions

Thinking about selling? Talk with The Madrona Group about your property and listing plan, or browse the Washington real estate FAQ library.