Comfort by Tom Merton
Plain Language Listing Agreement
Download the Form: Plain-Language-Listing-Agreement.pdf
Forms are intended for general purpose and common situations only. Pre-set sections on Forms may not be readily understood due to their complexity.
Please note that the following does not constitute a comprehensive explanation of the definitions and ramifications of any part of any Form. This is a basic overview only and is not intended to take the place of the complete text and legal implications of any part of any Form.
It is absolutely essential to bear in mind that a Form does not apply to every situation, and great caution should be exercised due to this fact.
Professional advice is strongly recommended in order to guarantee full comprehension of all Forms. Relying solely on the outline provided here is not recommended.
Be advised that each Real Estate transaction is unique, and as such, the Toronto Real Estate Board is not responsible for, and cannot be held liable for, any agreements, misunderstandings, or misconceptions arising from the descriptions set out here.
The Listing Agreement is a contract in which the Seller of a property authorizes a real estate agency to act on his or her behalf when that property is placed on the market. In order to comply with the REBBA Code of Ethics, this agreement must be in writing. Such an agreement is also required for the securing of commission.
First Part of the Agreement: The first part of this document lists the parties taking part in the Agreement. It also stipulates the amount of time for which the Agreement is valid. The Seller’s initial is required by the Real Estate Council of Ontario (RECO) if the property is listed for over six months.
1. DEFINITIONS AND INTERPRETATIONS:
This part of the document sets out the parties to be described as "the Seller" and "the Buyer" for the agreement.
This part of the document states the fee to be paid by the Seller to the real estate agency in the event of a successful sale. This section also sets out the holdover period, which is the number of days after the contract’s expiry in which the real estate agency is entitled to collect the agreed fee. The holdover period is in effect even if the property is sold privately by the Seller himself or herself, provided that the Buyer was either shown the property or introduced while the contract was valid.
This part of the document confirms that the Salesperson has described the various kinds of agency relationships possible in a real estate transaction. This same section grants the real estate agency permission to involve another real estate agency in the marketing of the Seller’s property, and sets out the way in which the commission will be shared between the agencies involved.
4. FINDER'S FEES:
This section permits the Salesperson to receive any finder's fee offered to him or her by a mortgage company in addition to the commission already set out. Please note that specific consent is necessary when a finder's fee is to be paid.
5. REFERRAL OF INQUIRIES:
This part of the document indicates that the Seller must cooperate with the real estate agency while the contract is valid. It also requires that the Seller inform the Salesperson assigned to him or her of all inquires regarding his or her property. If the Salesperson is not informed of an inquiry that leads to a private sale during either the holdover or listing periods, the Seller must still pay the Salesperson’s agreed-upon commission.
In this part of the document, the Seller grants the real estate agency permission to advertise the property and to place on the property “For Sale” and “Sold” signs. Advertising undertaken by the agency must accord with agency policy, and no liability for this advertising can be placed upon the Seller.
The warranty guarantees that those who have signed this contract are indeed the parties required to authorize the property’s sale. It is also a disclosure of any mortgages, easements, encumbrances, or other such third-party claims.
8. INDEMNIFICATION and INSURANCE:
This part of the document relieves Salespeople of any liability for the physical state of the property and for any damages incurred during viewing by potential Buyers.
9. FAMILY LAW ACT:
This represents a warranty that all requisite spousal consent has been given in the form of any relevant spouse’s signature.
10. VERIFICATION OF INFORMATION:
This part of the document grants permission to the Salesperson to seek out and use mortgage and tax details and any other reasonable information pertaining to the property for the purpose of marketing that same property.
11. USE AND DISTRIBUTION OF INFORMATION:
This part of the document grants Salespeople the legal right to use personal details given by the Seller for the purpose of facilitating the transaction. This information shall not be made available to moving companies or to any other third parties.
Due to Privacy Laws, Salespeople are required to ask the Seller if he or she is willing to grant other agencies permission to call about the possibility of re-listing the property once the present contract has expired. Initials from the Seller are necessary.
12. SUCCESSORS AND ASSIGNS:
This part of the document binds all parties legally acting in place of the Seller to act in accordance with this Agreement.
13. CONFLICT OR DISCREPANCY:
In the event of a contradiction between the text of this document and an addition (schedule) made to it by one of the parties bound by this Agreement, the addition overrules the original document.
14. ELECTRONIC COMMUNICATION:
This document is still legally binding if distributed electronically.
Indicate here whether an extra, specific document or Form is being added to this one.
This part of the document declares that the company listing the property will market that property for the Seller, and shall attempt to secure an Offer that the Seller finds satisfactory. This declaration must be signed on behalf of the agency by the Salesperson.
The Declaration of Insurance requires the Salesperson to sign a statement verifying that he or she carries insurance as demanded by REBBA (the Real Estate and Business Brokers Act).