Hi Team,
As your Broker, I review a lot of listing agreements. Some mistakes keep popping up — and they can cost you commissions, create MLS violations, trigger ethics complaints, or worse.
Here are the Top 10 Most Common (and Expensive) Mistakes agents make on the SCR Exclusive Right to Sell Listing Agreement (Form 220):
1. Incomplete or Vague Compensation (Section 5)
Leaving the commission blank, writing just “X%” without the full language, or forgetting the Additional Compensation for Unrepresented Buyer in Section 6.
Result: Commission disputes at closing.
2. Missing or Incorrect Protection Period (Section 5)
Leaving the blank empty or not explaining that it ends if the seller lists with another broker.
Result: You show the house… then lose the commission after expiration.
3. Agency Relationship Not Properly Initialed (Section 3)
Failing to get initials on Dual or Designated Agency permission boxes — or proceeding without the required separate agreements.
Result: Ethics complaints or license issues.
4. MLS / Marketing Choice Not Clearly Selected (Section 18)
Choosing the wrong Option 1 or 2, or initialing one but marketing the property the opposite way (especially “Brokerage Exclusive” listings with public posts or signs).
Result: Seller complaints and possible MLS violations.
5. Missing Required Disclosures & Addendums
No Seller’s Property Condition Disclosure (Section 14), missing Lead-Based Paint for pre-1978 homes (Section 25), or no Coastal Addendum when needed. Result: Liability and potential lawsuits.
6. Signature & Initial Boxes Left Blank on Every Page
Skipping the “OWNER / OWNER / OWNER / OWNER, AND / BROKER” boxes at the bottom of pages 1–7.
Result: Seller later claims “I didn’t agree to that.”
7. Lockbox & Access Without Proper Approval (Section 19)
Installing a lockbox without the seller’s clear “agrees” initial and review of the liability release.
Result: Theft or damage claims against you.
8. Forgetting the Administrative Fee (Section 5)
Not discussing or documenting the $199 Admin Fee and whether it’s sole, credited, or not credited.
Result: Lost revenue and awkward conversations.
9. Failing to Review Owner Duties (Sections 13 & 23)
Not walking sellers through their obligations regarding showings, maintenance, and cooperating with offers.
Result: Frustrated agents and uncooperative sellers.
10. Improper Termination or Amendment (Sections 2 & 33)
Letting a seller cancel early without a signed Release (Form 250) or making verbal changes to price/terms.
Result: Commission disputes and lost protection.
