Once you've selected a REALTOR® to market and sell your property, you and the agent will enter into a written, legally binding contract called a listing agreement. The CALIFORNIA ASSOCIATION OF REALTORS® offers its own official agreement for California REALTORS®, the Residential Listing Agreement (Exclusive Authorization and Right to Sell) (RLA). This standard form stipulates all agreement terms, including the listing price, the listing time period, the broker's commission and more. It also informs the seller of issues and legal requirements that may be involved in the process.
The Residential Listing Agreement - Agency (RLAA) is another C.A.R. standard form providing generally the same provisions as the RLA. The primary difference between the two standard forms is that the RLA specifies that the seller's REALTOR® will receive a commission on the home's sale regardless of how the buyer is located, whether it be through the seller's REALTOR®, another REALTOR®, the seller's own initiative or any other means. By contrast, the RLAA requires that the seller's REALTOR® will only be paid if the buyer is procured by the seller's REALTOR® or any other REALTOR®.
Before you enter into a listing agreement, you'll want to thoroughly understand all the terms and each party's respective roles -- information that your REALTOR® can provide.