What must be stated in a listing agreement regarding the performance of a broker?

In a listing agreement, it is essential to state the commission structure because this outlines the financial arrangement between the seller and the broker. This aspect is crucial for both parties, as it specifies how much the broker will earn upon the successful sale of the property. Clear communication regarding the commission helps to manage expectations and ensures that all parties understand their obligations.

The commission structure is a critical element of the agreement since it defines how payments will be made, whether it will be a percentage of the sale price or a flat fee. This allows sellers to assess the total cost of engaging the broker's services and helps brokers ensure they are compensated for their efforts in marketing and selling the property.

Other aspects like the marketing strategy, timeframe for showing properties, and target buyer demographic may be discussed in the listing agreement, but they do not carry the same statutory requirement for specification as the commission structure does. These elements can vary based on individual preferences and market conditions, making them less of a necessity compared to establishing the commission terms.