If you are planning to sell your property, you may have come across the term “limited agent agreement.” This document is essentially a contract between you as a seller and a real estate agent, outlining the agent`s responsibilities and limitations in selling your property.

A limited agent agreement differs from a typical agent agreement in that it limits the scope of the agent`s representation. Instead of acting as your exclusive agent, the agent is only authorized to perform certain tasks on your behalf.

These tasks may include things like listing your property on the MLS, scheduling showings, and helping you negotiate with potential buyers. However, the agent is not authorized to make any binding decisions on your behalf, such as accepting or rejecting offers.

While this may seem like a drawback, a limited agent agreement can actually be beneficial for both parties involved. For sellers, it allows them to retain more control over the selling process and make more informed decisions about their property without feeling pressured by the agent.

For agents, a limited agent agreement can help them avoid potential legal and ethical issues that may arise from making decisions on behalf of a seller without proper authorization.

It is important to note that a limited agent agreement should always be drafted by a qualified attorney and reviewed by both the seller and agent before signing. It should also clearly outline the scope of the agent`s representation and any limitations or restrictions placed on their authority.

In summary, a limited agent agreement can be a useful tool for sellers who want more control over the selling process and for agents who want to avoid potential legal and ethical issues. As with any legal document, it is important to fully understand the terms and implications before signing.