Listing Agreements (All owners)
June 21, 2018
To protect yourself and your clients, it is good to be aware of potential issues that can arise when listing agreements are not signed by all the owners. Agents can be found in violation of Utah statute and Division of Real Estate rules if they are not careful.
The Division gave clear warnings in a recent newsletter about risks agents face when only one of multiple owners signs the listing agreement. The agent could be accused of false representation, advertising property without written consent of the owners or failure to verify the accuracy of information used to market the property (Utah Statute 61-2f-401 (1) (d); Utah Administrative Rules R162-2f-401b (17) and R162-2f-401a(6)).
Avoid trouble by making sure you know all the owners of the property before you sign a listing agreement. Don’t assume anything about ownership. Ask your clients. If they are unsure, dig in and double check if necessary. When every owner signs the listing, you help ensure the agreement is enforceable against all the owners and that everyone is on the same page. You will want that understanding if the transaction does not go as smoothly as planned. Making sure all owners sign the listing agreement protects you and your clients from potential problems down the road.