BIC TIP #1200: How Many Listing Agreements Do I Need for Multiple Parcels?
Tip number 1,200, and on a Friday no less. Stephen Long, The Notorious BIC, marks the milestone with a question brokers ask him regularly: “I am listing multiple parcels of land. Do I need a separate listing agreement for each parcel?” The answer, of course, is the favorite answer in real estate: it depends.
It Depends on How the Seller Wants to Sell
The deciding factor is the seller’s intent. Are the parcels going to be sold as independent properties that could go to different buyers? Or are they going to be sold together as one package, and only as one package?
Once you know the answer to that question, the paperwork falls into place.
Selling Separately? Separate Agreements.
If the seller wants the flexibility to sell one parcel to one buyer and another parcel to a different buyer, you would need multiple listing agreements, one for each parcel being offered independently.
That makes sense when you think about it. Each parcel has its own price, its own potential buyer, and its own path to closing. Each one deserves its own clearly defined agreement, so there is no confusion about what is listed, at what price, and on what terms.
Selling as a Package? One Agreement.
If the parcels will only be sold together in one blanket package, then you need just one listing agreement. In that agreement, you would describe all of the parcels being sold.
Stephen suggests identifying the additional parcels by attaching a GIS map or using another clear method of description, such as parcel identification numbers or deed references. The goal is to leave no doubt about exactly which land is included in the sale.
The Practical Takeaway
Before you draft anything, ask the seller how they intend to sell. Independent sales mean multiple listing agreements. A single package means one agreement with all parcels clearly described, often with a GIS map attached. Get the structure right at the start, and you will avoid headaches later. If a situation falls somewhere in between, check with your broker-in-charge.
