Listing Agreement Explained
The Listing Agreement is a contract between you and the brokerage giving the Brokerage your permission to act on your (the Sellers’s) while offering your home for sale in the open market. This written agreement is necessary in order to secure commission and ensure compliance with REBBA.
This agreement identifies:
- The listing brokerage involved and their phone number as well as the Sellers full names and address of property to be for sale.
- It indicates a time frame for which the contract is valid (RECO requires additional initials if the contract is extending beyond 6 months).
- The agreed upon listing price.
- By signing this you are acknowledging that you have not signed a listing or commission agreement with any other brokerage or real estate agent for the sale of this property.
- It defines who will be referred to as the Buyer and Seller throughout the agreement.
- You (the Seller) agree to pay the real estate brokerage if they are successful in selling the property. It also indicates a period of days after the expiry of this agreement that the real estate brokerage is entitled to their fee if you (the Seller) end up selling the property privately to a Buyer who was introduced to the property within the contract period, known as the “holdover period”.
- You understand the commission is paid to the selling brokerage from the listing brokerage. If you have indicated a different amount to be paid as commission from what the listing brokerage has from what the listing brokerage has indicated on the listing and is less than what you have agreed to pay, you agree to pay the difference.
- You consent for the agent to accept a finder’s fee from a mortgage company in addition to the commission (should one be referred and paid).
- You are confirming that the different types of agency representation relationships have been explained to you. You also authorize the real estate company to co-operate with any other real estate companies to market the property and breaks down the commission sharing structure between the two parties.
- This agreement also requires you to commit to working with that certain brokerage for the length of the contract and that you must inform your Agent of any enquiries on the property that come to you (the Seller). If you don’t inform your Agent and it results in a successful private sale of the property within the listing period or the holdover period, the set commission is still owed to the Agent.
- You (the Seller) give permission for the real estate brokerage to place a “For Sale” and “Sold” sign on the property and for the company to advertise the property according to company policy. You (the Seller) will not be held liable or the advertising.
- The Selling parties signing this agreement all give their authority to sell the property and confirm the disclosure of 3rd party claims such as easements, mortgages and encumbrances etc.
- You (the Seller) warrant the property is insured and will not hold the Listing Brokerage responsible for any loss or damage to the property or contents occurring during the term of this contract, including fire, theft, vandalism while prospective Buyers view the property.
- Family Law states, that if spousal consent is required, the spouse has signed.
- You (the Seller) give authorization to obtain and use any reasonable information (tax, mortgage details etc.) to market the property.
- You (the Seller) understand that personal information will also be collected by the agent to assist in making this transaction happen but will not be distributed to 3rd party companies or moving companies.
- Because of the Privacy Laws, Sellers initials are required when the Salespeople ask you (the Seller) if the property does not sell, do you give your permission for other brokerages to call regarding re-listing after this contract expires.
- Your successors, heirs, estate trustees or any other party legally acting on your (the Sellers) behalf must also abide by the terms of this contract.
- If there is anything that needs to be added to the agreement, it should be added as a Schedule in which supersedes what is on the original form.
- These contracts may be sent via electronic means and will still be considered binding.
- On behalf of you (the Seller), the listing brokerage will endeavour to obtain an offer acceptable to you.
- That you have read the agreement and fully understand what you have read, what you are signing and dating and have received a true copy of the agreement