Legal Definitions - listing

In legal contexts, the term "listing" refers to several distinct types of agreements or records, primarily in real estate, securities, and taxation. Each context defines a specific kind of formal arrangement or inventory.

1. Real Estate Listing

A real estate listing is a formal agreement between a property owner and a real estate agent. Under this agreement, the agent commits to finding a buyer or tenant for a specific property, at an agreed-upon price and terms, in exchange for a fee or commission upon successful completion of the transaction.

• Example 1: A couple decides to sell their suburban home and signs a contract with a local real estate agent. This contract outlines the agent's responsibilities, the asking price for the house, and the percentage commission the agent will receive if they find a buyer.
  This illustrates a real estate listing because it's a formal agreement for an agent to market and sell a property on behalf of the owner for a fee.
• Example 2: A commercial property owner wants to lease out an empty retail space in their shopping center. They engage a commercial real estate broker through a signed agreement, specifying the rental terms, the target tenant profile, and the broker's commission for securing a lease.
  This demonstrates a real estate listing as it's an agreement for a broker to find a tenant for a commercial property under specific conditions.

Within real estate, there are several common types of listings:

• Exclusive-Agency Listing: This type of listing grants one specific real estate agent the sole right to sell the property for a defined period. However, the property owner retains the right to sell the property themselves without owing a commission to the agent if they find the buyer directly.
  • Example 1: An artist wants to sell their unique studio and gallery space. They sign an exclusive-agency agreement with a specialized commercial real estate agent. The agreement states that this agent is the only one authorized to market the property, but if the artist finds a buyer through their own network, they won't owe the agent a commission.
    This is an exclusive-agency listing because only one agent is appointed, but the owner can still sell the property independently without paying the agent.
  • Example 2: A family is relocating and wants to sell their house quickly. They hire a single agent but also plan to actively market the home to friends and colleagues. Their agreement specifies that if the agent brings a buyer, they get a commission, but if a family friend buys it directly from the owners, no commission is due.
    This illustrates an exclusive-agency listing as it gives one agent exclusive selling rights while preserving the owner's right to sell without commission.
• Multiple Listing: This refers to an agreement where the primary real estate agent shares the property information with other agents, typically through a shared database or service (like a Multiple Listing Service, MLS). If another agent finds the buyer, the commission is usually split between the primary agent and the selling agent.
  • Example 1: A homeowner lists their property with a real estate agent who then enters the details into a regional MLS database. This allows hundreds of other agents from various firms to view the property and bring their potential buyers, increasing the property's exposure.
    This is a multiple listing because the primary agent is sharing the listing with a network of other agents to broaden the search for a buyer.
  • Example 2: A developer has several new condominium units to sell. They list them with one brokerage firm, which then distributes the listing information to other cooperating brokerage firms, ensuring a wider pool of potential buyers are reached.
    This demonstrates a multiple listing as it involves the primary agent making the property available for sale through other agents.
• Net Listing: In a net listing, the property owner sets a minimum acceptable price for their property. The real estate agent's commission is any amount received from the sale that exceeds this agreed-upon minimum price.
  • Example 1: A property owner tells their agent, "I need to walk away with exactly $400,000 from the sale of my apartment. Anything you sell it for above that amount is your commission."
    This is a net listing because the agent's compensation is the difference between the actual sale price and the owner's guaranteed net amount.
  • Example 2: A company needs to sell a vacant commercial lot for at least $750,000 to cover outstanding debts. They agree with a broker that if the lot sells for $800,000, the broker keeps the $50,000 difference as their fee.
    This illustrates a net listing where the agent's commission is the surplus above a predetermined minimum sale price for the owner.
• Open Listing: An open listing allows a property owner to engage multiple real estate agents simultaneously to sell their property. The owner is only obligated to pay a commission to the agent who successfully finds a buyer and closes the sale. The owner also retains the right to sell the property themselves without paying any commission.
  • Example 1: A landowner wants to sell a large rural parcel and informs three different real estate agents that they can all try to find a buyer. The first agent to bring a successful offer that closes will earn the commission. The owner also puts up a "for sale by owner" sign on the property.
    This is an open listing because multiple agents can market the property, only the successful one gets paid, and the owner can sell it independently.
  • Example 2: A small business owner wants to sell their storefront and contacts several local brokers, telling each that they will pay a commission only to the one who secures a buyer. The owner also continues to advertise the property themselves to potential direct buyers.
    This demonstrates an open listing as it involves multiple agents competing for a commission, and the owner can also sell the property without an agent.

2. Securities Listing

In the context of securities, a listing is a formal contract between a company and a stock exchange. This agreement permits the company's shares, bonds, or other financial instruments to be traded publicly on that specific exchange.

• Example 1: A rapidly growing technology startup decides to "go public" and enters into an agreement with the NASDAQ stock exchange to have its shares traded there.
  This illustrates a securities listing because it's the formal process by which a company's shares become available for trading on a specific stock exchange.
• Example 2: A large utility company issues new corporate bonds and arranges for them to be listed on the New York Stock Exchange, allowing investors to buy and sell these bonds through the exchange's platform.
  This demonstrates a securities listing as it involves a company's financial instruments being authorized for public trading on an exchange.

A specific type of securities listing is:

• Dual Listing: This occurs when a company's securities are listed and traded on more than one stock exchange, often in different countries or regions.
  • Example 1: A major European automotive manufacturer has its shares listed on the Frankfurt Stock Exchange and also decides to pursue a dual listing on the New York Stock Exchange to attract American investors and increase global visibility.
    This is a dual listing because the company's shares are traded on two separate stock exchanges.
  • Example 2: An Australian mining company lists its stock on the Australian Securities Exchange (ASX) and also obtains a dual listing on the Toronto Stock Exchange (TSX) to access Canadian capital markets and a broader investor base interested in natural resources.
    This demonstrates a dual listing as the company's securities are available for trading on two distinct national exchanges.

3. Tax Listing

A tax listing refers to the process of creating an official inventory or schedule of a person's or entity's property that is subject to taxation. It can also refer to the resulting list itself, which is used by tax authorities to assess and collect taxes.

• Example 1: The county tax assessor's office compiles an annual list of all real estate properties within its jurisdiction, detailing each property's owner, address, and assessed value for the purpose of calculating property taxes.
  This illustrates a tax listing as it is an official inventory of taxable property used for assessment.
• Example 2: A small business owner is required by their municipality to submit a detailed inventory of all their company's tangible personal property, such as office furniture, computers, and machinery, so that the local government can assess business personal property taxes.
  This demonstrates a tax listing because it's a submitted schedule of assets used for tax calculation.