Chapter 4
Listings and
Real Estate Employment Agreements

 Learning Objectives: An understanding of key aspects of real estate employment agreements and the various types of listings.

In real estate sales transactions, an agency is a fiduciary relationship where the broker represents the interests of a buyer or seller in dealing with third parties.

As the Agent, you are required to keep your client’s interests primary and still treat all other parties honestly.

A. EMPLOYMENT AGREEMENTS (Listings): When a seller signs an agreement to list the property, the listing broker is hired. It is an employment agreement. The listing agreement defines the duties of the broker as well as the terms and conditions by which the broker earns a commission.

Arizona law requires, under ARS 32-2151.02(a), that all real estate employment agreements (listing agreements) must:

1. Be written

2. In clear language that is unambiguous

3. Set forth all material terms, including broker compensation

4. Have a definite expiration date or duration

5. Be signed by the parties