BIC TIP #1137: Limited Service Listings
Can you just take a listing, put it in the MLS, and step aside? Stephen Long hears this question constantly. The answer is that limited service listings are legal in North Carolina. You have probably seen them in the MLS with instructions to contact the seller directly. But there is a big difference between limiting your service and limiting your responsibility, because you cannot limit your liability under license law.
Legal Does Not Mean Allowed Everywhere
Before you take one, check with your broker-in-charge. Not every firm permits limited service listings. Stephen’s own firm is a full service firm and does not allow them at all.
Your firm’s policy controls what you can do under its license, so a quick conversation with your BIC comes before any conversation with the seller.
There Is No Standard Form for This
If your firm does allow limited service listings, know that there is no standard form for them. You would need your own agreement drafted to conduct this type of work, and that is a job for a real estate attorney, not a cut-and-paste from an old listing agreement.
And yes, you still need an agency agreement in place. A limited scope does not mean no agreement.
Limit the Service, Not the Duties
You can limit what you do and, in turn, what you charge. What you cannot do is shrink your obligations as a licensee. You are still responsible for making sure your marketing is accurate, including square footage and measurements. If you put it in the MLS, it is your listing data.
You also still have to discover and disclose material facts that would need to be shared with potential buyers. A reduced fee does not buy a reduced standard of care, and the Commission will not accept that you were only hired to enter the listing.
The Practical Takeaway
Limited service listings are legal, but only if your firm allows them. Have an attorney-drafted agreement, put a proper agency agreement in place, and remember that your license law duties come along in full. Accurate marketing and material fact disclosure are not optional extras, no matter how small the fee.
