BIC TIP #1120: Co-Listing Between Firms

Co-listing between brokerage firms is permitted, but it must be approached with caution and careful documentation. Each firm may enter into its own Exclusive Right to Sell Listing Agreement (Form 101) with the seller; however, that alone is not sufficient.

Each listing agreement must be accompanied by custom addenda that clearly define the co-listing relationship. At a minimum, those addenda should address advertising responsibilities, the total compensation owed by the seller, how commissions will be split between the firms, cooperative compensation (if any) in each applicable MLS, and any other foreseeable operational or compliance issues.

Because co-listing arrangements can become complex quickly, brokers should strongly consider involving an attorney to draft or review the custom addenda. Proper planning on the front end helps prevent disputes, protects all parties, and ensures compliance with license law and MLS rules.