We have run into a couple of instances where a property is listed on Zillow (or another consumer portal) which clearly displays a property management company as the listing agent, but the property is not listed on the MLS. When contacting the management company, we are told that there is no listing agreement.
Very succinctly: you cannot market a property without a listing agreement. You may only advertise or market a property if there is a listing agreement in place between the sponsoring broker and the property owner. Additionally, the broker name must be clearly displayed on any advertisements.
Connecticut law prohibits a real estate broker or salesperson from representing or negotiating on behalf of a buyer unless a buyer signs a written agreement to allow the broker or salesperson to act on buyer's behalf. Sec. 20-328-6A of CT License Law Regulations:
Sec. 20-328-6a. Agreements. (a) (1) Before a licensee attempts to negotiate a sale, exchange, or lease of real estate, other than a commercial real estate transaction, on behalf of the owner or lessor of real estate, the licensee shall enter into a listing agreement with the party or parties for whom the licensee will act. All listing agreements shall be in writing, properly identifying the property and containing all of the terms and conditions of the sale, exchange or lease, including the commission to be paid, the date on which the listing agreement is entered into and its expiration date. The listing agreement shall be signed by the owner, seller or lessor or an agent authorized to act on behalf of the owner, seller or lessor only by a written document executed in the manner provided for conveyances in Connecticut General Statutes, Section 47-5, and by the broker or the broker's authorized agent. The type of listing shall be clearly indicated in the listing agreement. The licensee shall deliver immediately a copy of any listing agreement to any party or parties executing the same, where such listing agreement has been prepared by such licensee or under the licensee's supervision and where such listing agreement relates to a real estate transaction with which the licensee is associated as a broker or a salesman. For listing agreements entered into on or after October 1, 2004, if the real estate broker permits real estate licensees not affiliated with the real estate broker to advertise the real estate, the real estate broker shall disclose such permission and all exceptions to the advertising on the listing agreement and obtain the owner's or lessor's authorization for such advertising.
(2) Before a licensee attempts to negotiate a purchase, exchange or lease of real estate, other than a commercial real estate transaction, on behalf of a prospective buyer or lessee of real estate, the licensee shall enter into an agency agreement with the party or parties for whom the licensee will act. All agency agreements shall be in writing, containing all of the terms and conditions of the agency agreement, including the compensation to be paid, the date on which the agency agreement is entered into and its expiration date. The agency agreement shall be signed by the prospective buyer or lessee or an agent authorized to act on behalf of the prospective buyer or lessee only by a written document executed in the manner provided for conveyances in Connecticut General Statutes, section 47-5, and by the broker or the broker's authorized agent. The licensee shall deliver immediately a copy of any agency agreement to any party or parties executing the same, where such agency agreement has been prepared by such licensee or under the licensee's supervision and where such buyer agency agreement relates to a real estate transaction with which the licensee is associated as a broker or salesman.
PRIVATE SALES/RENTALS
When a real estate professional enters a rental or sale listing into connectMLS, and either the landlord/owner or the property manager secures the tenant directly, the listing should be marked as CLOSED with the sales agent ID of BUYER (the ID used for an unrepresented buyer/lessee), Sales office ID of 13438.
EXISTING WAITING LIST
In cases where the Property Management Company/Home Owners Association requires that a Seller offer their unit to other existing owners in the same development for a certain time period before listing with a real estate professional and/or PMC/HOA has a wait list, any sale/lease secured from either of these means, the listing can be entered into our system as a COMP ONLY.
Comments
Please sign in to leave a comment.