40 Year Right-to-List Agreements

40 Year Right-to-List Agreements

Long-term right-to-list contracts are present in Alabama. These contracts between an owner and a broker give the broker the right to list a property for up to 40 years and penalize the owner or the owner’s successors in interest if another broker is the listing agent. The broker often records the contract in the probate court, binding the owner’s successors in interest and creating a cloud on the title. Lawsuits and legislation against the practice are popping up across the country, and one company using the practice has stopped, at least temporarily. Even so, contracts entered into prior to the cessation or by other companies are still valid. A best practice is to have sellers state in writing that no such contract was entered on the property, and for some, it may be worthwhile to do a title search prior to accepting the listing.