Wednesday, August 26, 2009

Which listing agreement do I use?

I have a seller who wants to sell an unimproved residential lot. What listing agreement should I use?

The choice of listing agreement depends upon the likely buyer’s intended use. Since a buyer will probably use the lot for residential purposes (e.g., to build a home), the residential listing agreement (TAR form 1101) would appear to be the best choice. The listing broker could delete those matters that would apply to improvements or add a statement indicating that the property is an unimproved lot in the Special Provisions paragraph. Either of these alternatives would tend to eliminate confusion by the seller.
It should be noted that these same considerations would apply to the choice of a listing agreement if the likely intended use of a buyer of an unimproved property would be for commercial or farm and ranch purposes.

For other legal topics, visit the Legal FAQs on

No comments: