What You’re Actually Signing When You List Your Home
Every home sale in Texas starts with a listing agreement. It’s the contract between you — the seller — and your broker that authorizes them to market and sell your property. It defines what the broker will do, what you’ll pay, how long you’re committed, and what happens if things don’t work out.
The form most brokers use is the TXR Residential Real Estate Listing Agreement — Exclusive Right to Sell (formerly known as TAR 1101). It’s a standard form published by Texas Realtors, but the terms inside are not standard. Every blank on that form is negotiable, and what gets filled in determines the deal you’re making with your broker.
Most sellers sign this document in 10 minutes without reading it. That’s a mistake. Here’s what every section means in plain English.
Table of Contents
▼Types of Listing Agreements
Before we get into the sections, you should know there are three types of listing agreements in Texas:
Exclusive Right to Sell — the broker earns a commission no matter who finds the buyer. If your neighbor knocks on your door and makes an offer, your broker still gets paid. This is the most common type by far — it’s what 99% of sellers sign, and it’s the form we’re breaking down in this article.
Exclusive Agency — the broker earns a commission only if they or another agent bring the buyer. If you find a buyer on your own with no agent involvement, you don’t owe the broker anything. These are rare because most brokers won’t agree to them.
Open Listing — no exclusive relationship. You can list with multiple brokers simultaneously and only pay the one who brings the buyer. These are uncommon in residential real estate and typically used in commercial transactions.
For the rest of this article, we’re focused on the Exclusive Right to Sell — because that’s what you’re almost certainly going to sign.
Commission Rate and When It’s Earned
This is the section everyone looks at first, and for good reason. The commission rate is what you pay the listing broker at closing for their services.
There is no standard commission rate in Texas. It’s negotiable — always has been, always will be. If a broker tells you “the standard rate is X%,” they’re telling you their rate, not an industry standard. Commission rates vary widely depending on the brokerage model, and you should understand the differences before you commit.
The agreement also defines when the commission is earned. In most cases, it’s earned when the broker procures a buyer who is ready, willing, and able to purchase on the terms in the agreement — or on terms you accept. This matters because in some situations the commission can be owed even if the sale doesn’t close. Read this section carefully and ask your broker to explain the specific scenarios where commission is due.
Duration and Term
The listing agreement has a start date and an end date. That’s how long you’re committed. During this period, the broker has the exclusive right to market and sell your property.
Common terms range from 90 days to 12 months. Six months is typical for traditional brokerages. Shorter terms (90-180 days) are more seller-friendly because you’re not locked in for a year if the relationship isn’t working.
Ask about the term before you sign. If a broker insists on 12 months and won’t budge, ask why. A broker who’s confident in their service shouldn’t need to lock you in for a year.
Cancellation Provisions
Can you get out of a listing agreement if things aren’t working? Maybe. It depends entirely on what the agreement says.
Some agreements include a cancellation clause that allows either party to terminate with written notice. Some allow cancellation but require the seller to reimburse the broker for marketing expenses — photography, signs, advertising — already incurred. Some don’t allow cancellation at all without the other party’s consent.
This is one of the most important sections to read before signing. If the agreement has no cancellation provision and you’re unhappy 30 days in, your only option may be to wait it out. For a deeper dive on this, read our guide on whether you can cancel a listing agreement in Texas.
Services Included
This section defines what the broker will actually do for you. It’s where the difference between a limited service and full service listing becomes clear — because the listing agreement itself spells it out.
A full-service agreement typically includes:
- Comparative market analysis and pricing strategy
- Professional photography
- MLS listing and syndication to major search portals
- Showing coordination through a centralized service
- Offer review and negotiation
- Inspection response guidance
- Contract-to-close management through funding
A limited service agreement may only include MLS entry and basic compliance — everything else falls on you. The agreement defines the scope of services, so read it. If a service isn’t listed in the agreement, don’t assume it’s included.
A shorter, simpler agreement isn’t always better. A one-page agreement usually means fewer services. A more detailed agreement typically means more defined responsibilities — and that protects both sides.
Sell your home for just 1% commission.
Protection Period
This one catches sellers off guard. The protection period is a window of time — usually 90 to 180 days — after your listing agreement expires during which the broker may still be owed a commission.
Here’s how it works: if a buyer was introduced to your property during the listing term and that buyer purchases the property within the protection period after the agreement expires, the broker’s commission is still due. The idea is to prevent sellers from waiting out the listing term and then selling to a buyer the broker’s marketing brought in.
Most protection periods include an exception: if you relist with another broker and that buyer purchases through the new broker, the original broker’s protection period doesn’t apply. But the specifics matter — read the language in your agreement.
Who Pays for What
The agreement should define who covers marketing expenses. Some brokers include everything — photography, signage, lockbox, digital marketing — in the commission. Others charge separately for some or all of these.
Ask these questions before signing:
- Is professional photography included or extra?
- Who provides and pays for the yard sign?
- Who provides the lockbox?
- Are there any upfront fees or marketing charges?
- If the listing doesn’t sell, do I owe anything?
At Creekstone, everything is included in the 1% commission. No upfront fees, no surprise charges. Here’s how we make that work.
Buyer Agent Compensation
Your listing agreement addresses how much compensation is offered to the agent representing the buyer. This is separate from what you pay your listing broker — it’s the amount offered through MLS to incentivize buyer’s agents to show your property.
This is a negotiable number. Who pays realtor fees in Texas and how those fees are structured has changed significantly in recent years. Your broker should walk you through how buyer agent compensation works, what’s typical in your area, and how the amount you offer can affect your pool of buyers.
Seller’s Obligations
The listing agreement isn’t just about what the broker does — it also defines what you’re responsible for as the seller. Common obligations include:
- Making the property available for showings during the listing term
- Providing required disclosures (seller’s disclosure, lead-based paint, etc.)
- Cooperating with the broker’s marketing efforts
- Notifying the broker of any material changes to the property
- Not entering into another listing agreement during the term
These obligations are reasonable, but you should understand them. If you can’t accommodate showings because of a work schedule or tenant situation, discuss that with your broker before signing — not after.
What to Look for Before You Sign
Before you put your name on any listing agreement, ask these questions:
- What is the commission rate, and is it negotiable? If the broker says no, keep shopping.
- How long is the term? Don’t sign a 12-month agreement unless you have a specific reason to.
- What are the cancellation terms? Know your exit options before you need them.
- What services are included? Get specifics — not generalities. If “full service” doesn’t come with showing coordination, it’s not full service.
- What is the protection period? How long, and what are the exceptions?
- What upfront costs are there? Photography, signs, marketing fees — who pays?
- How much buyer agent compensation is being offered? And how does that affect your total cost?
A broker who’s transparent about their agreement will answer every one of these without hesitation.
Sell your home for just 1% commission.
How Creekstone Handles the Listing Agreement
Our listing agreement is a full-service Exclusive Right to Sell. It includes everything — professional photography, MLS listing, showing coordination, offer negotiation, inspection guidance, and contract-to-close management through funding. All at 1% commission.
We walk every seller through every section of the agreement before they sign. No rushing, no pressure. We’ll even email you a copy to review on your own time before you commit to anything — so you can compare it against any other agreement you’re considering.
If you want to see what a full-service listing agreement looks like before you sign with anyone, reach out and we’ll send you a copy. No commitment, no follow-up calls. Just a real agreement you can read, mark up, and bring questions back on.
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Frequently Asked Questions
What is the TXR Residential Real Estate Listing Agreement?
It's the standard contract between a Texas home seller and their listing broker. It authorizes the broker to market and sell your property, defines the commission rate, the services included, the duration of the agreement, and each party's obligations.
Can I negotiate the commission rate in a listing agreement?
Yes. Commission rates are always negotiable — there is no standard or required rate in Texas. The rate you see on the agreement is whatever you and the broker agreed to. If a broker tells you otherwise, that's a red flag.
What is the protection period in a listing agreement?
The protection period is a window of time after your listing agreement expires during which the broker may still be owed a commission. If a buyer they introduced during the listing term purchases your home within that window, the broker's commission is still due.
Can I cancel a listing agreement in Texas?
It depends on the agreement. Some brokers include cancellation provisions with specific conditions — others don't. Read the cancellation section carefully before signing. Some agreements allow cancellation but require you to reimburse the broker for marketing expenses already incurred.
What's the difference between Exclusive Right to Sell and Exclusive Agency?
With Exclusive Right to Sell, the broker earns a commission no matter who finds the buyer — even if you find them yourself. With Exclusive Agency, the broker only earns a commission if they or another agent bring the buyer. Exclusive Right to Sell is what 99% of Texas sellers sign.
