Signatures and Changes on Listing Agreements

QUESTION: I am working on a new listing and the husband has signed the listing agreement, but the wife has been transferred to another state and she hasn’t gotten around  to signing it yet. I want to get the listing into the MLS as soon as possible. Can I submit it with only the husband’s signature? Also, if they want to make a change to the listing  agreement later on, like to reduce the price, do they both have to initial the change before I can update the listing in the MLS?

ANSWER: In relation to the signatures of parties on a listing agreement, let me quote from the North Carolina Real Estate Commission’s North Carolina Real Estate Manual (2008-2009 Edition): “It is just plain bad practice not to obtain the names and signatures of all the property owners on the listing agreement. The agent filling in the terms of  the listing contract should always ascertain the names of all owners of the property, describe them as parties to the contract, and obtain their signatures at the bottom of the  contract.” If the property is owned as tenants by the entirety, both the husband and the wife must sign the listing agreement, as they are treated legally as if they were one for  the purpose of property ownership. If the property is owned by one spouse, the non-owner spouse holds a potential “marital life estate” in the property under NC law and the  owner-spouse cannot convey clear title to the property without the non-owner’s spouse’s signature. A non-owner spouse who fails to sign the listing agreement has not  agreed to sell his or her potential interest in the property and cannot be compelled to cooperate in a sale. A similar situation arises with joint tenants or tenants in common. A  co-tenant who fails to sign the listing agreement has not agreed to sell his or her interest in the property and cannot be compelled to cooperate in a sale. The co-tenant who  signed the listing agreement “may be able to convey his or her individual proportionate interest in the property to a third party who then would own the property jointly with the original co-tenant owners, but no sale of the entire tract can occur without all of the co-owners’ signatures.” (Manual, p. 277) Further, your MLS Rules likely specifically state  that you must submit the listing within a certain time frame only after all necessary signatures have been obtained. For more information on listing agreements and securing  the proper signatures in situations involving spouses, property in an estate, property held by a trust, incapacitated sellers, divorce and powers-of-attorney, see the “Listing  Procedures” section of the NCAR Model Office Policy Manual. As for subsequent changes to the listing agreement, note three things, namely: (1) the North Carolina Real  Estate Commission rules require listing agreements to be in writing from the time of their formation, so if you have a subsequent change in its terms, it must be in writing; (2)  your MLS Rules likely specifically state that any change in listed price or other change in the original listing agreement shall be made only when authorized in writing by the  seller; and (3) many listing agreement forms (including NCAR’s standard form listing agreements) contain a general provision that all modifications must be in writing and  signed by both the seller and the firm.