The listing agreement.
To list your property on REW.ca and other real estate websites, you and your listing agent must agree to a number of terms and conditions using a listing agreement.
This is rarely the most riveting part of the process, but it’s important to:
- Discuss the critical role of the listing agreement in the home selling process.
- Understand the legally binding nature of the real estate listing contract.
- Become familiar with the terms and conditions within the listing agreement.
The listing agreement is a standard industry contract that outlines the terms and conditions agreed to by a home seller and their real estate agent, and the responsibilities of both parties. These include the real estate fee and percentage shared with the buyer’s brokerage, the list price of the home, the dates the listing is in effect, and more.
The agreement is a lengthy, lawyer-drafted document designed to protect both you and your agent. Most of it can’t be changed without additional legal advice.
This contract is legally binding. Once both parties have signed it, neither can unilaterally decide to cancel or change it. Since your agent knows this form inside and out, and has used it hundreds of times, it’s in your best interest to become familiar with it, too.
Your agent is required to explain this document in detail with you before you sign on the dotted line. The agreement is several pages long, so ideally, your agent will give you time to read it over and highlight any questions before you meet for signing. The better you understand this document, the more time and energy you can spend on your listing strategy.
It’s convenient (and tempting) for both real estate agents and home sellers to sign documents digitally, but I strongly recommend that you discuss the listing contract in person. Signing is an opportunity to discuss what’s in this critical document and how the listing process will unfold. It’s also an opportunity to strengthen trust and understanding between you and your agent.
You’ll find a current example of the BCREA Multiple Listing Contract in the Resource Guide, as well as a document explaining each term. If you’re keen to have a better understanding of this important contract, have a look.
A Q&A with Mary Cleaver, the author of You Can’t Live in the Ceilings.
Mary Cleaver recently published You Can’t Live in the Ceilings, a practical guide to everything about buying and selling real estate in BC. We sat down with her to ask why she wrote this book and what she hopes Homeseekers will gain from reading it.
