Question:
In your Schedule “A”s, do you delete the role of the Brokerage as a “representative” of the client?
Answer:
Let’s look at the standard form Listing Agreement for Designated Representation, that’s Form 271. It came out in early February 2024, several months after the introduction of TRESA, on 1 December 2023.
Statement #1
“The Designated Representative will be providing services and representation to the Seller and the Brokerage provides services but not representation.”
Statement #2
“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 and Designated Representative.”
Statement #3
“The Seller hereby appoints the Listing Brokerage as the Seller’s agent for the purpose of giving and receiving notices pursuant to any offer or agreement to purchase the Property.”
Statement #4
“The Seller further agrees that the Listing Brokerage shall have sole and exclusive authority to make all advertising decisions relating to the marketing of the Property for sale during the Listing Period.”
Statement #5
“The Seller hereby appoints the Listing Brokerage or the Listing Brokerage’s authorized representative as the Seller’s attorney to execute such documentation as may be necessary to effect obtaining any information as aforesaid.”
Statement #6
“The Listing Brokerage agrees to … represent the Seller in an endeavour to obtain a valid Offer to purchase the property on the terms set out….”.
Review
The above statements are all contained in the Listing Form 271, and while some are accurate, others may be confusing, or are completely in accurate:
Statement #1 accurate
Statement #2 Schedule A is necessary
Statement #3 confusing
Statement #4 confusing
Statement #5 inaccurate
Statement #6 inaccurate
Let’s have a quick look at TRESA as it applies to this situation ins.13.4 (1) 1 v:
“…… in the case of a designated representation agreement, the fact that the brokerage will not provide representation.”
That matter was covered in #1 with accuracy, however, 3, and 4 were confusing and 5 and 6 were inaccurate statements.
Since the document clearly contemplates a Schedule “A”, then that is where any confusing should be resolved.
Brian Madigan LL.B., Broker