Valid Listing Contract or Not?

Understanding A listing Contract

Question:


Seller signs listing with signature date of August the 5th with commencement date of August 10th for MLS.

Seller now decides that he doesn’t want to list it. 

Is this still a valid contract?

Answer:

The Listing Agreement is valid.

It’s just that one of its terms, namely the “commencement date” is now problematic. That term, if not honoured could put the Seller in breach of contract.

But, what are the damages? If the Listing Agent didn’t sell the property or bring a full price unconditional Offer, then there’s no right to a commission.

However, there are costs which are thrown away, and they should be recovered. So, if you just spent $1,500.00, then you should be reimbursed for that expenditure. Naturally, the contract time and the holdover time are both relevant too.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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