Loan Broker Listing Agreement — Exclusive Right to Borrow — RPI Form 104

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This form is used by a seller’s agent when employed by a property owner as their sole agent for a fixed period of time, to list the property for sale, locate a buyer and sell the property.

Your use of RPI Form 104

Listing agreement as an employment contract

A listing agreement is an employment contract entered into by a broker and a client, evidence of the fiduciary relationship of agency. In contrast, mortgage lenders do not have clients, just customers called consumers. Thus, lenders do not enter into written employment agreements with borrowers, but do make offers and take applications.

As discussed in the context of this agreement, the broker’s client may be:

a borrower seeking a mortgage or a mortgage-backed loan (MBL); or
a noteholder seeking to sell a note directly or collaterally secured by a trust deed.

Listing agreements are used by brokers when a client, typically a buyer or individual owner of real estate or holder of a trust deed note, wants to:

obtain a mortgage or a loan collaterally secured by an existing trust deed note such as a seller carryback note [See RPI Form 104]; or
sell an existing note or a note collaterally secured by a trust deed. [See RPI Form 112]

Here, the listing agreement obligates the client to pay the broker an agreed-to fee when the broker arranges a loan or sale of a TD note as arranged or agreed in the listing agreement.

Written fee agreement

A broker and their agents use a loan broker listing agreement when agreeing to provide services for a fee to:

arrange mortgage financing to fund the purchase of real estate;
refinance an existing mortgage;
sell an existing trust deed note; or
further encumber a property to obtain cash. [See RPI Form 104]

On entering into an exclusive right-to-borrow listing agreement, the client employs the broker to act on their behalf to locate a lender and arrange a mortgage to be secured by:

a property to be purchased; or
a property currently owned by the client. [See RPI Form 104]

The right-to-borrow listing agreement grants the broker sole authority to solicit mortgage lenders and locate one who will originate a mortgage on terms sought by the client.

Critically, it states the fee amount the client agrees the broker is to receive and the conditions to be met for the broker to be entitled to collect the fee they earn.

Formal documentation of an obligation to pay a fee — a written agreement signed by the client — is the mandated requisite to the right to enforce collection of a brokerage fee from the client.

Analyzing the loan broker listing agreement

An agent uses the Loan Broker Listing Agreement — Exclusive Right to Borrow published by Realty Publications, Inc. (RPI) when agreeing to be employed by a buyer or an owner of a property as their sole agent for a fixed period of time. The form authorizes the agent to arrange a mortgage to be secured by the property. [See RPI Form 104]

The Loan Broker Listing Agreement — Exclusive Right to Borrow contains:

Retainer commitments: the listing period, broker objectives and client’s trust funds deposit for costs [See RPI Form 1041];
Addenda: a credit application, loan purpose statement, acknowledgement of changing conditions, and other addenda to be added to the checklist [See RPI Form 1042];
Brokerage fee: the amount of the fee the broker is to receive for their services [See RPI Form 1043];
Loan terms: loan terms sought by the client [See RPI Form 1044];
Real estate securing the loan: the type, address, recorded encumbrances, improvements, fair market value (FMV), property taxes and rental information [See RPI Form 1045];
Personal property included as collateral: a description, value, amount of encumbrance and lender [See RPI Form 1046];
General provisions: Broker and owner authorizations and warranties, and a mediation provision [See RPI Form 1047]; and
Signatures of the broker and buyer or owner. [See RPI Form 104]