An issue that has arisen recently is the matter of referencing certain matters in a Listing Agreement. RECO said that you should have a Schedule “A”. OREA prepared a Schedule “A” but said that you only need it, if you are offering something extra, or taking something away.
In any event, in order to avoid problems going forward, why not simply include a Schedule “A”?
This is a quote from the RECO Information Guide:
“If you are a seller, an agent can:
• Advise you on market conditions and the best strategy to attract buyers and get the best price for your home
• Market or advertise your home, including arranging photographs, videos and virtual tours
• Provide referrals to other professionals you’ll need, like a lawyer or home staging company
• Arrange and attend home inspections and appraisals
• Arrange showings for interested buyers
• Advise you on how to handle competing offers, sharing the content of competing offers, and other aspects of the transaction
• Vet offers and potential buyers to ensure they can afford to buy your property
• Negotiate with buyers to achieve the best results, price, and terms, for you
• Guide you through paperwork and closing the transaction successfully”.
All of the above points are good. In some cases, they might not all apply. Let’s draft something up, generally, and leave out the casual language. Also, you won’t be including any cartoons.
Proposed Schedule “A” for Standard Listing Agreements
First, it should start off with either:
- The Brokerage shall, or
- The Designated Representative shall.
So, let’s look at the most common situation going forward which would read as follows:
Schedule “A”
The Designated Representative shall observe and comply with the fiduciary duties owed at common law, including disclosure, obedience, competence, confidentiality, accounting and loyalty, shall comply with the Code of Ethics under the Trust in Real Estate Services Act, 2002, including the observance of courteous, honest, and good faith conduct executed with integrity and shall endeavour to provide you with some or all of the following:
- Advise you on market conditions
- Keep you up to date with respect to changing market conditions
- Advise you concerning the best strategy to attract buyers and achieve the best price for your home
- Market or advertise your home, on MLS and various other internet formats
- Arrange photographs, videos and virtual tours, if advisable
- Provide recommendations and referrals to other professionals, as required
- Arrange and if advisable, attend home inspections and appraisals
- Arrange showings for prospective buyers
- Review offers
- Advise you on how to handle offers, multiple offers, and competing offers, including sharing various contents with others
- Advise you on various other aspects of the transaction
- Advise you about the risks associated with certain potential buyers to ensure their financial integrity
- Negotiate with buyers to achieve the best results, price, and terms, for you
- Assist you with the successful closing of the transaction.
COMMENT
The above Schedule is simply a suggestion for your consideration when it comes to representation, services and assistance. You might add or subtract various points in any given situation.
Also, be aware of the fact that matters related to “Termination” should also be part of your Schedule “A”.
Brian Madigan LL.B., Broker