Listing agreement리스팅 계약 (매도 대리 계약)

What is it?

A listing agreement is the contract a seller signs to hire a brokerage (the real estate company) to sell their home. Ontario law (TRESA, the Trust in Real Estate Services Act) calls it a "seller representation agreement", and a listing agreement is one kind of it.

The contract is with the brokerage, not with the individual agent. Once you sign, you are the brokerage’s client, and the brokerage must promote and protect your best interests.

Unlike a buyer representation agreement, a listing agreement is always about one specific property. RECO (the regulator of Ontario real estate agents) says the seller’s agreement must clearly identify that property.

In Toronto and the GTA, agents often use a form made by the Ontario Real Estate Association (OREA), which people in the industry may call "Form 200". Check the form number and title on the document you sign.

What the agreement must contain

The law (O. Reg. 567/05, s. 13.4) does not let a brokerage sign an agreement that fails to set out the following "clearly, comprehensibly and prominently". A seller’s agreement has one extra fee item.

RECO says the amount paid toward the buyer’s fee should not be written as "a portion of" your brokerage’s fee. The two amounts should be stated separately so you know exactly what you are paying for.

Listing price, commission and HST

The listing price (the asking price) is set by the seller after hearing the agent’s market analysis. It is written in the agreement, but no law sets it and it can be changed later.

The commission is agreed between you and the brokerage. It is not fixed or approved by RECO, any government body or any real estate association, and an agent must not say it is. It can also be a series of percentages that go down as the sale price goes up.

A fee based on the difference between the listing price and the actual sale price is banned by law (TRESA, s. 36 (3)).

HST in Ontario is 13%, and it is usually charged on top of the commission. Check whether the fee in your agreement includes HST or not. For an example of the total, see the calculator in our selling guide (estimates for reference only).

MLS listing and "exclusive" listings

Most listings go on MLS. As CREA describes it, MLS systems are run by real estate boards and associations and used by their REALTOR® members to share listings and sell cooperatively. The agreement normally includes your consent to the MLS listing.

Some brokerages offer what is often called an "exclusive listing". This usually means the home is not put on MLS and only that brokerage markets it. Fewer buyers may see the home, which can mean less competition. Check the agreement and ask your agent exactly what it means.

The opposite is a "mere posting": the only service is putting the home on MLS, and the seller does the rest. RECO says this is still a representation agreement, and the brokerage must act in the seller’s interests within that narrow service.

Either way, the "services" section must say what the brokerage will do. If you expect photos, video, advertising, open houses, showing management or offer negotiation, have them written into the agreement or a schedule.

Term and holdover

No law sets the length of the agreement. The expiry date must stand out on the first page and you must initial next to it.

Most listing agreements have a holdover clause. It says that if the home sells within a set period after the agreement expires (especially to someone who saw it through that brokerage during the term), you may still owe the commission. RECO’s example: with a 30-day holdover, you might have to pay if you sell within 30 days after expiry, under certain conditions.

No law sets the holdover length, and it can be negotiated. If you plan to switch brokerages, watch the dates so two holdover periods do not overlap.

The seller’s duties and the brokerage’s duties

The agreement sets out what each side must do. The law and the RECO guide give the big picture.

• Seller: share the important facts you know about the home, answer your agent’s questions quickly, understand the agreement, and pay the agreed fee. The RECO guide says you may owe the fee even if a deal later falls through because of your own default.
• If you have a legal duty to disclose a fact to buyers (for example, a hidden defect) and your agent knows it, the agent must tell every interested buyer (s. 22.2).
• Brokerage: put your interests first, keep your confidential information (bottom price, reason for selling) private, bring you every written offer, and tell you promptly about every significant step (s. 22.6).
• With competing offers, the brokerage must tell every buyer who offered how many offers there are, and may share offer contents only if you direct it (s. 22.7). The RECO guide says to give that direction clearly in writing.
• If your fee terms could affect whether an offer is accepted (for example, what you pay toward the buyer’s brokerage), the brokerage must disclose those terms to anyone who makes a written offer (s. 23 (4)).

Cancellation and multiple representation

The termination terms come from the agreement. The law only requires that, if there are such terms, they are stated clearly; it does not give sellers an automatic right to cancel. Before signing, check what happens if the agent does not do what was promised, and whether you owe anything if you end it early.

If the same brokerage (or the same designated representative) also represents the buyer, that is "multiple representation". Then the agent cannot advise you on what price or terms to accept. The law bans it without written disclosure and written consent, and RECO expects the agreement to say what happens if you refuse.

Read the fee terms for the case where the same brokerage also represents the buyer. Many agreements change the fee in that case.

Example