Before You Sign a Listing Agreement in Michigan: What Sellers Should Know

If you're thinking about selling, one of the first papers you'll sign is the listing agreement. It's the contract between you and the real estate brokerage that will market your home, and it sets the rules for the whole sale: how long it lasts, what it costs, what your agent will do, and how compensation to a buyer's agent is handled.

A lot of sellers sign it quickly so they can get to the exciting part. I'd rather you understand it first. Whether you're selling in Fenton, Grand Blanc, Flint, Davison, Flushing, Linden, Holly, Swartz Creek, or anywhere else in Genesee County and the surrounding areas, here's what to look for before you sign.

First, the Agency Disclosure

Before you share anything confidential with an agent, such as your bottom-line price or why you're moving, Michigan law requires the agent to give you a written disclosure explaining the types of agency relationships available and the duties each one creates (MCL 339.2517). You'll see options like seller's agent, buyer's agent, and dual agent.

When you sign a listing agreement, your agent becomes a seller's agent, who acts solely on your behalf. Under that same law, an agent working under a service agreement owes you, at a minimum, reasonable care and skill, loyalty to your interests, confidentiality, a timely accounting of any money they handle for you, and a referral to other licensed professionals when a question falls outside their expertise.

The disclosure also explains dual agency. Michigan allows one licensee to represent both the buyer and the seller only with the knowledge and written, informed consent of both, and in that situation the agent can't share everything they know with either side. It's worth asking any agent up front how they handle it if a buyer they're working with wants your home.

What a Michigan Listing Agreement Covers

1. A definite expiration date, with no automatic renewal

Michigan's real estate licensing rules require every listing agreement (the state calls it a "service provision agreement") to include a definite expiration date. The agreement can't require you to give notice to cancel on or after that date (Mich. Admin. Code R 339.22131). Michigan Realtors' legal hotline puts it plainly: there can be no automatic renewals in listing agreements (Michigan Realtors Legal Hotline).

How long should it be? That's something to discuss with your agent. It should give enough time to market the home well for the season you're selling in, without locking you in longer than makes sense.

2. A copy for you, filled in before you sign

Under that same rule, the agreement must be fully completed before you sign it, and you must get a true signed copy at signing. Never sign a listing agreement with blanks left to be "filled in later."

3. The services your agent will provide

Michigan law sets a floor for what a listing agent does. Unless you knowingly waive some of these in a separate limited service agreement, your agent must market your home in the manner agreed in the listing agreement, accept and present offers and counteroffers, help you develop and negotiate offers until all contingencies are satisfied or waived, and help as needed to complete the sale after the purchase agreement is signed (MCL 339.2517).

That marketing piece is worth spelling out. Ask what the plan includes: pricing research, photography, MLS exposure, online and social media marketing, showings and open houses, and how often you'll hear from your agent. If it matters to you, ask for it in writing.

4. The listing price

The agreement usually states the list price. Pricing is one of the most important decisions you'll make, and I walked through how it works in How to Price Your Mid-Michigan Home to Sell.

5. Your listing broker's compensation

The agreement spells out what you'll pay the listing brokerage and when it's earned. Broker fees and commissions are fully negotiable and not set by law (National Association of REALTORS). Read this section closely so you understand exactly what triggers payment.

6. Compensation for a buyer's agent, if any

This part changed in 2024. Since August 17, 2024, offers of compensation to buyer's agents are no longer allowed on MLSs. Sellers can still choose to offer compensation off the MLS, through things like flyers, signs, or direct communication between agents, and sellers can still offer buyer concessions, such as help with closing costs, on the MLS (NAR: Consumer Guide to MLSs).

If you do want your listing broker to pay a buyer's broker, NAR's rules require the listing agent to disclose that to you in writing ahead of time, specifying the amount or rate, and get your approval (NAR: Broker-to-Broker Agreements 101). On the other side, buyers working with an agent now sign a written agreement before touring homes, and that agreement states what their agent will be paid.

Whether to offer compensation or concessions is your choice. It can affect how attractive your home is to buyers who would otherwise have to cover their agent's fee themselves, so it's worth talking through as part of your pricing and marketing plan. If you're comparing offers that ask for seller help, my post on comparing multiple offers covers concessions in more detail.

7. What happens with buyers after the listing ends

Many agreements include a clause about buyers who saw your home during the listing and buy it shortly after it expires. Read how that period is defined and how long it lasts. Michigan Realtors also points out that if your listing expires while a purchase agreement is still pending, and you list with a different company, the pending sale should be excluded from the new listing so you don't end up owing two commissions (Michigan Realtors Legal Hotline).

8. Ending the agreement early

Life changes. Ask what happens if you need to take your home off the market or want to end the listing before it expires, and whether there's any cost to do so. It's much easier to agree on this before you sign than to sort it out later.

Questions to Ask Before You Sign

• When does this agreement expire?
• What exactly will you do to market my home, and how often will we talk?
• What is your compensation, and when is it earned?
• Are you recommending that I offer buyer's agent compensation or buyer concessions? Why?
• How do you handle it if one of your buyers wants my home?
• What happens if I need to cancel or pause the listing?

A good agent will be glad you asked. These answers tell you a lot about how the rest of the sale will go. Once you're under contract, my guide to what happens from accepted offer to closing picks up from there.

Thinking About Selling?

I'm happy to sit down with you, walk through a listing agreement line by line, and answer every question before you commit to anything. No pressure. Call or text me at (810) 962-4908, and let's talk about your home and your timing.

Kennedy Christensen, Tremaine Real Estate. This post is general information, not legal or tax advice. Laws and industry rules can change, so for questions about your specific contract or situation, talk with a real estate attorney.