eXp overhauls listing agreement, invites industry to use it
To align with the NAR settlement, eXp has issued a new listing form that explicitly states that there is no commission sharing with a buyer's agent.
Key points:
- eXp’s updated exclusive listing agreement is written to avoid implications of cooperative compensation between the listing agent and buyer agent.
- The company’s SVP of brokerage operations told Real Estate News that eXp didn’t plan to “get into the forms business” but is now focused on providing all new forms to agents.
- Holly Mabery also said that anyone who wants to use one of eXp’s forms “is most welcome to take it and improve upon it.”
International brokerage eXp has retooled and issued its latest exclusive listing agreement to its 87,000 agents. But the form is not only for them: Others are welcome to use the four-page document, said Holly Mabery, eXp's SVP of brokerage operations, to Real Estate News.
The company has earned praise in recent weeks for the perceived pro-consumer sentiment of its buyer agency agreement from a prominent consumer watchdog, and eXp wants to build on that with its listing agreement, Mabery said. Equally important was ensuring that the new contract met the requirements of the NAR settlement.
No more cooperative compensation
The new listing agreement spells out clearly on the first page that the broker "does not share commissions with a buyer's broker." Instead, there's a separate section for seller concessions that indicates that concessions could be utilized by buyers for a number of different purposes — including buyer agent fees. "All seller concessions are negotiable," the contract reads.
Listing broker compensation is close to the top of the form and includes lines for compensation amount — either a flat rate or percentage of the sale price — and there's also language for how a seller and their agent should handle unrepresented buyers, including a line which allows for an additional fee for working with unrepresented buyers. That section also expresses that the broker "will not represent buyer," which avoids a dual agency scenario.
eXp has found itself in the 'forms business' now
eXp has attempted to act as somewhat of a trailblazer with new forms as state-level associations and others continue to work on drafting and distributing their own. But Mabery indicates that eXp is still open to changing or improving their forms.
"We didn't think we were gonna get into the forms business," she told Real Estate News. "But when the initial NAR settlement came out, we recognized there needed to be a way forward to remove friction for buyers and to communicate with agents. And it shouldn't be complicated."
And eXp agents shouldn't have to wait for associations to issue forms, Mabery added, also hinting at similar criticism consumer watchdog group Consumer Federation of America has raised about association forms.
"I know there's great value in the association. But relying on what we've always relied on is not going to get it done," Mabery said. "What I'm seeing right now, in some instances with state or local or even MLSs, is they're inserting more friction into the transaction that there needs to be."
Others are welcome to use eXp forms
Mabery said that eXp "did not copyright our forms on purpose" to ensure they are widely shared and utilized. She said that eXp has also shared its forms and input to state associations to help shape and produce agreements that work best for consumers and agents.
"Anybody who needs it is most welcome to take it and improve upon it," she said.
"The settlement — like COVID — has propelled us forward into a brave new world and it is really important that not just the associations but our brokerages are involved. I didn't want to get into the forms business, but here I am."