We will review the wording on a paragraph by paragraph basis. The Titles in Italics are my own to assist you in your review. That are not part of the actual document. Below are the provisions in the Listing:
Appointment
“the Seller hereby gives the Listing Brokerage the exclusive and irrevocable right to act as the Seller’s agent,
Time Period
commencing at ………………………….. on the ……………………… day of ………………………………………………………………………… , 20……………….., (a.m./p.m.) and expiring at 11:59 p.m. on the …………………….. day of ……………………………………………………………, 20……………..(the “Listing Period”),
Acknowledgement
Seller acknowledges that the length of the Listing Period is negotiable between the Seller and the Listing Brokerage and, if an MLS® listing, may be subject to minimum requirements of the real estate board, however, in accordance with the Trust in Real Estate Services Act, 2002 (TRESA), the Listing Brokerage must obtain the Seller’s initials.
(Seller’s Initials)
Price and Terms
to offer the Property for sale at a price of: Dollars (CDN$) ……………………………………
…………………………………………………………………………………………………………………………………………………………………………………… Dollars
and upon the terms particularly set out herein, or at such other price and/or terms acceptable to the Seller. It is understood that the price and/or terms set out herein are at the Seller’s personal request, after full discussion with the Listing Brokerage’s representative regarding potential market value of the Property.
No other Commission Agreements
The Seller hereby represents and warrants that the Seller is not a party to any other listing agreement for the Property or agreement to pay commission to any other real estate brokerage for the sale of the Property.
(Seller’s Initials)
Schedule A, ………………………………………………………….. attached hereto forms part of this Agreement, of which Schedule A sets out the details with respect to the services, confidentiality and representation of the Brokerage.”
COMMENT
At the outset of the Listing Agreement, we specify the Price and Terms, confirm that there are no other commission agreements in place and sign off on both the start and the end of the contract “listing period”, which we should note is not the same as the contract period, which is extended automatically with the “holdover provision” and the duty to maintain confidentiality etc.
In addition, we have a reference to Schedule “A” which sets out the details with respect to:
- the services,
- confidentiality, and
- representation
of the Brokerage.
Naturally, this means that Schedule “A” will now have to be amended to include those matters.
Many Brokerages are adding the list of services outlined by RECO in the Information Guide but nothing else. That may very well be insufficient.
Brian Madigan LL.B., Broker