Minnesota Listing Agreement

Listing Contract Page 1 of __________ pages (count any addenda)

THIS LISTING CONTRACT ("CONTRACT")[ALSO KNOWN AS "LISTING AGREEMENT"] HAS SIGNIFICANT LEGAL IMPORTANCE AND SHOULD BE REVIEWED BY A REAL ESTATE LAWYER PRIOR TO SIGNING. MINNESOTA LAW PROHIBITS BROKERS AND SALESPERSONS FROM GIVING LEGAL ADVICE OR OPINIONS CONCERNING LEGAL RIGHTS OR OBLIGATIONS OR THE LEGAL EFFECTS OF THIS CONTRACT.

SEE IMPORTANT MINNESOTA STATUTE CONCERNING LISTING AGREEMENTS ON REVERSE SIDE OF THIS PAGE.

DEFINITIONS

This Contract involves the Property (together with improvements) located at: _________________________________________________________________, legally described as: ________________________________________________________________________________________________________(Property).

"I" and "Me" mean: __________________________________________________________________________________________________________________(SELLER).

"You" means: ________________________________(SALESPERSON) acting on behalf of: ________________________________________(REAL ESTATE BROKER).

TERMS

You may offer the Property for sale until the date of expiration for a price of not less than $____________ CASH, or OTHER: _________________________.

EXPIRATION

This Contract expires at 11:59 p.m. on _________________, 19___. Either You or I may cause this Contract to expire sooner by giving 21 days advance written notice to the other party of the earlier expiration date. Early expiration shall not affect rights under a valid purchase agreement and shall not affect any compensation to be earned as a result of any such purchase agreement transaction being successfully closed.

SELLER DUTIES

I will give You all government notices, and any additional information You request, relevant to the sale of the Property. I will cooperate with You in selling the Property. I will perform obligations agreed to in the purchase agreement. I will provide and pay for any inspections and reports required by any governmental authority. If you sell the Property, You may notify the Multiple Listing Service and its members of the price and terms of the sale. I authorize You to obtain information about any existing financing on the Property.

SALESPERSON / BROKER SERVICES AND DUTIES

You will offer the Property for sale. You will use your best efforts to advertise, market and show the Property at the best price and terms. You will represent my best interests at all times and place my interests above all others, especially your own. You will give Me your undivided loyalty, and owe to Me ALL the duties that an agent owes his or her principal under the common law of agency except as modified by the mandatory disclosure requirements of the Department of Commerce Real Estate Broker Practice Regulation 2805.1400. Your duties and liabilities under this Contract are greater than those set forth in Minnesota licensing statutes.

CAUTION: DUAL AGENCY WILL REDUCE SIGNIFICANTLY THE LEVEL OF SERVICES AND DUTIES LISTED ABOVE.

MARKETING

You will do the following (check all those applicable):

______ Place a picture advertisement in the local multiple listing services within ____hours from the signing of this Contract until its expiration.

______ Place _____(# of) picture ads per month in ____________________________________________________________________.

______ Conduct _____(# of) real estate salespersons open houses per month.

______ Conduct _____ (# of) public open houses per month.

______ Perform additional marketing items as shown on Page 3 of this Contract.

You may list other properties during the term of this Contract.

COMPENSATION

NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT.

A. I will pay You compensation (subject to the conditions of this Contract) upon the successful closing of the sale of the Property as follows (choose 1, 2 or 3):

1. ______ A commission of ______% of the selling price, except as adjusted herein.

2. ______ $___________________flat fee.

3. ______ Other: ____________________________________________________________________________________________.

B. In the following circumstances your compensation will be adjusted:

1. You agree to pay not less than ______% of your compensation to a cooperating broker who finds a buyer who closes on the sale of the Property. I have the option of paying that broker at closing and reducing your compensation by that amount.

2. DUAL AGENCY. IF YOU ARE A DUAL AGENT, YOUR LEVEL OF SERVICES AND DUTIES TO ME WILL BE REDUCED SIGNIFICANTLY.

a. If You and another salesperson are DUAL AGENTS in this transaction, your compensation will be (choose one):

_____________ % of the selling price (the Consumer Federation of America recommends 4-4.5%) OR

$_____________ (for flat fee compensation contracts).

b. If You are a DUAL AGENT and there are no other salespersons in this transaction, your compensation will be (choose one):

_____________ % of the selling price (the Consumer Federation of America recommends 2.5-3%) OR

$_____________ (for flat fee compensation contracts).

3. If You are NOT a DUAL AGENT and there are no other salespersons in this transaction, your compensation will be (choose one):

______________% of the selling price (the Consumer Federation of America recommends 3-4%) OR

$_____________ (for flat fee compensation contracts).

4. If the sales price is $____________ or ________% less than your recommended price of $____________, your compensation will be (choose one):

______________ % of the selling price OR

$_____________ (for flat fee compensation contracts).

REFERRAL AND OTHER FEES

You warrant and represent to Me and covenant that no fees, except as disclosed in this Contract, will be paid by You to, or received by You from, any broker, real estate salesperson, banker, closing services company, title insurance company, or any other person or entity, or pursuant to any controlled business arrangements EXCEPT (check as appropriate and complete for any exceptions):

1.______ NONE.

2.______ $__________ or ___________ % of the selling price, to be paid by You to (names and addresses):________________________________________

__________________________________________________________________________________________________________________________

3.______ $__________ or ___________ % of the selling price, to be received by You from (names and addresses):___________________________________

__________________________________________________________________________________________________________________________

OVERRIDE CLAUSE AND PROTECTIVE LIST

I will pay your compensation after the expiration of this Contract without a sale if within __________________ (not to exceed 180 ) days:

1. I successfully close a sale of the Property to a person who physically toured the Property with You; and

2. That person is properly on a protective list which You give Me within 72 hours after the expiration of this Contract; and

3. That person is not on my exclusion list.

However, this Override Clause will not be effective, and I will not be obligated to pay You compensation if I have executed another valid listing agreement pursuant to which I am obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of the Property.

EXCLUSION LIST

I will not owe You any compensation if I sell the Property to any of the following:

1. My parents, children, siblings, grandparents, grandchildren, first cousins, aunts or uncles, nephews or nieces or any other relatives by operation of law.

2. Neighbors named here:______________________________________________________________________________________________________________

3. Employees of the companies named here: ______________________________________________________________________________________________

4. Other persons named here: __________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

5. Anyone who responds to my marketing efforts.

IF THIS PROVISION #5 IS DELETED, I MIGHT OWE YOU A COMPENSATION EVEN IF I FIND THE BUYER.

6. Anyone who responds to marketing efforts of another real estate broker, who has a valid listing contract with me.

IF I HIRE MORE THAN ONE REAL ESTATE BROKER, BOTH LISTING CONTRACTS MUST CONTAIN THIS PROVISION #6 AND THIS LISTING CONTRACT FORM MUST BE USED. IF THIS PROVISION #6 IS DELETED, I SHOULD NOT SIGN ANOTHER LISTING CONTRACT DURING THE TERM OF THIS CONTRACT OR I MAY OWE MORE THAN ONE COMMISSION.

Page 2 of __________ pages (count any addenda)

CLOSING SERVICES

I understand that You or your broker may own or be affiliated with a real estate closing agent. Identify any related or controlled real estate closing agents that might provide closing services on this sale. I understand that I must indicate in writing whether it is acceptable to have You arrange for closing services (initial one):

____ I wish to have You arrange for the closing.

____ I will arrange for the closing.

Identify all relationships with real estate closing agents: __________________________________________________________________________________________

___________________________________________________________________________________________________________________________________________

I understand that I might not have to incur costs for closing services. I understand that I may hire a lawyer to provide my closing services. You will provide me with three competitive estimates (including an estimate from the Buyer's or Lender's closer, if any) for my costs of closing services, if any.

ENFORCEMENT

If You bring an action to enforce this Contract, You will not file a notice of lis pendens or cause any lien or other cloud to appear in the land records.

NONDISCRIMINATION

In the marketing and sale of the property, neither You nor I will discriminate on the basis of race, color, creed, religion, national origin, sex, sexual preference, marital status, status with regard to public assistance, disability, whether physical or mental, family status, or any other legally protected status.

SELLER STATUS

_____ Citizen of the United States; _____ married.

_____ Partnership formed under the laws of: State of ________________________________.

_____ Estate or Trust: identify: _______________________.

_____ Corporation formed under the laws: State of __________________________________.

_____ Other business entity formed under the laws of: State of __________________________, type of entity:_______________________________.

_____ Foreign person. Country of citizenship:____________________________________________________________________________.

_____ Business entity not formed under the laws of the United States. Country of business entity:__________________________________.

DUAL AGENCY DISCLOSURE

I understand that I have the right to have you represent only me in this sale. I have no obligation to agree to a dual agency representation where you would also represent the buyer. I understand that Minnesota law does not require me to sign the Disclosure Statement in the box below or to make any decisions at this time about dual agency. I also understand that, "Dual agency requires the informed consent of all parties..." including me. (Minn. Stat. SS82.197, Subd. 4). If I do not sign the Disclosure Statement below, I am leaving the decision about dual agency to a later date when I may have information about my choices. I understand that leaving this unsigned will not prevent you from showing the property to your customers (prospective buyers).

{The following statement is reprinted from Minnesota Statutes SS82.197, Subd. 2(8) (1996).}

If a buyer represented by broker wishes to buy your property, a dual agency will be created. This means that broker will represent both you and the buyer(s), and owe the same duties to the buyer(s) that broker owes to you. This conflict of interest will prohibit broker from advocating exclusively on your behalf. Dual agency will limit the level of representation broker can provide. If a dual agency should arise, you will need to agree that confidential information about price, terms, and motivation will still be kept confidential unless you instruct broker in writing to disclose specific information about you. All other information will be shared. Broker cannot act as a dual agent unless both you and the buyer(s) agree to it. By agreeing to a possible dual agency, you will be giving up the right to exclusive representation in an in-house transaction. However, if you should decide not to agree to a possible dual agency, and you want broker to represent you, you may give up the opportunity to sell your property to buyers represented by broker.

Seller's Instructions to Broker

Having read and understood this information about dual agency, seller(s) now instructs broker as follows:

_________ Seller(s) will agree to a dual agency representation and will consider offers made by buyers represented by broker.

_________ Seller will not agree to a dual agency representation and will not consider offers made by buyers represented by broker.

____________________________________ _________________________________
Seller Broker

____________________________________ By:______________________________
Seller Salesperson

Date:________________________________

ADDITIONAL TERMS

____________________________________________________________________________________________________________________________________________

MARKETING PLAN Page 3 of __________ pages (count any addenda)

____________________________________________________________________________________________________________________________________________

ACCEPTED BY:____________________________________ DATE :_____________________, 19____ AT (TIME): _______:_______ (circle one) a.m. / p.m. Seller

ACCEPTED BY:____________________________________ ON BEHALF OF:________________________________________ DATE:_____________,19___

Salesperson Real Estate Broker

SELLER:_____________________________________________ REAL ESTATE BROKER:

Print Name

Address :______________________________________________ Address :_________________________________________________

______________________________________________________ _________________________________________________________

Phone:________________________________________________ Phone:___________________________________________________

Social Security # :_______________________________________ Federal ID # :_____________________________________________

SELLER:_____________________________________________

Print Name

Address :______________________________________________

______________________________________________________

Phone:________________________________________________

Social Security # :_______________________________________

MSA Sec. 82.195, Listing agreements MINNESOTA STATUTES ANNOTATED

CHAPTER 82. REAL ESTATE BROKERS AND SALESPERSONS

82.195. Listing agreements

Subdivision 1. Requirement. Licensees shall obtain a signed listing agreement or other signed written authorization from the owner of real property or from another person authorized to offer the property for sale or lease before advertising to the general public that the real property is available for sale or lease.

For the purposes of this section "advertising" includes placing a sign on the owner's property that indicates that the property is being offered for sale or lease.

Subd. 2. Contents. All listing agreements must be in writing and must include:

(1) a definite expiration date;

(2) a description of the real property involved;

(3) the list price and any terms required by the seller;

(4) the amount of any compensation or commission or the basis for computing the commission;

(5) a clear statement explaining the events or conditions that will entitle a broker to a commission;

(6) information regarding an override clause, if applicable, including a statement to the effect that the override clause will not be effective unless the licensee supplies the seller with a protective list within 72 hours after the expiration of the listing agreement;

(7) the following notice in not less than ten point boldface type immediately preceding any provision of the listing agreement relating to compensation of the licensee:

"NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL, OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT.";

(8)For residential property listings, the following "dual agency" disclosure statement:

Seller's Instructions to Broker

Having read and understood this information about dual agency, seller(s) now instructs broker as follows:

_________ Seller(s) will agree to a dual agency representation and will consider offers made by buyers represented by broker.

_________ Seller will not agree to a dual agency representation and will not consider offers made by buyers represented by broker.

____________________________________ _________________________________

Seller Broker

____________________________________ By:______________________________

Seller Salesperson

Date:________________________________

(9) a notice requiring the seller to indicate in writing whether it is acceptable to the seller to have the licensee arrange for closing services or whether the seller wishes to arrange for others to conduct the closing. The notice must also include the disclosure of any controlled business arrangement, as the term is defined in United States Code, title 12, section 2602, between the licensee and the real estate closing agent through which the licensee proposes to arrange closing services; and

(10) for residential listings, a notice stating that after the expiration of the listing agreement, the seller will not be obligated to pay the licensee a fee or commission if the seller has executed another valid listing agreement pursuant to which the seller is obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of the real property in question. This notice may be used in the listing agreement for any other type of real estate.

Subd. 3. Prohibited provisions. Except as otherwise provided in subdivision 4, paragraph (b), licensees shall not include in a listing agreement a holdover clause, automatic extension, or any similar provision, or an override clause the length of which is more than six months after the expiration of the listing agreement.

Subd. 4. Override clauses. (a) Licensees shall not seek to enforce an override clause unless a protective list has been furnished to the seller within 72 hours after the expiration of the listing agreement.

(b) A listing agreement may contain an override clause of up to two years in length when used in conjunction with the purchase or sale of a business. The length of the override clause must be negotiable between the licensee and the seller of the business. The protective list provided in connection with the override clause must include the written acknowledgment of each party named on the protective list, that the business which is the subject of the listing agreement was presented to that party by the licensee.

Subd. 5. Protective lists. A broker or salesperson has the burden of demonstrating that each person on the protective list has, during the period of the listing agreement, either made an affirmative showing of interest in the property by responding to an advertisement or by contacting the broker or salesperson involved or has been physically shown the property by the broker or salesperson. For the purpose of this section, the mere mailing or other distribution by a licensee of literature setting forth information about the property in question does not, of itself, constitute an affirmative showing of interest in the property on the part of a subsequent purchaser.

For listings of nonresidential real property which do not contain the notice described in subdivision 2, clause (10), the protective list must contain the following notice in boldface type:

"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK COMPETENT ADVICE."