When you decide to hire Goldfarb Real Estate Inc., Brokerage to sell your property, we encourage you to enter in a seller representation (i.e., client) relationship with the brokerage. As indicated in Working with a Realtor®, it is only in a client relationship that we can offer you the highest form of obligations, i.e., a duty of care in everything we do for you, as well as general and fiduciary obligations, and thereby protect your best interests.
More importantly, as you will see below, the Listing Agreement provides specific authorizations by the Seller that permit us to use the property information and marketing tools to sell the property. Without permission, we would not be able to successfully market and sell a listing.
This relationship is formalized in a Listing Agreement. The main purpose of this agreement is to grant authority to the real estate brokerage to act on your behalf in offering a property for sale on terms and conditions set forth in the representation agreement.
There are two parts to a seller representation (listing) agreement:
The listing agreement performs several functions:
- Establishes the seller/brokerage agency (legal) relationship
- Services being performed.
- Obligations of the parties.
- Defined limitations on the agent’s authority.
- Time limits concerning such authority.
- Provides property specifics for paper and electronic distribution.
- Furnishes information for negotiations and drafting offers.
When one enters a seller representation agreement, the authority can be exclusive or an MLS® listing.
An Exclusive listing:
- Involves giving the brokerage the sole right to sell the described property per the terms of the representation agreement.
- If the property is sold, the brokerage receives a commission and has the option to co-operate with other brokerages.
- Note. The property does not get listed on the MLS®
An MLS® listing:
- The listing is still an exclusive listing one.
- Co-operation with other brokerages is specifically authorized by the seller
- Note. The property is listed on the MLS®. Listings contained on the MLS® database are then available to authorized users (i.e., brokerages, brokers and salespersons members of that board) to assist them in representing their clients.
Key Elements of the Seller Representation Agreement
- Granted in brokerage's name.
- Start and end dates and times of the contract.
- Seller initials if contract spans more than 6 months.
- The responsibility to set a listing price rests with the seller, not the salesperson.
- Includes any other price or terms that the seller may accept.
- The seller is entitled to the salesperson's professional opinion regarding property value and listing price. A comparative market analysis (CMA) is usually prepared for that purpose.
Seller Representation/ Warranty
- This clause us bolded for emphasis, as this warranty relates to the property not being currently listed with any other brokerage.
- Seller agrees to pay a total commission that can be a % rate, an agreed amount, or a combination of both, plus applicable taxes.
- Deposit first applied to reduce the commission payable.
- Seller shall pay, on demand, any deficiency in commission and taxes owing on such commission.
- Seller shall pay commission, even if sale does not complete due to Seller's default or neglect.
- Commission payment terms apply after expiry of the representation agreement for the duration of the holdover period (60-90 days), unless the Seller enters into a new representation agreement with another brokerage, commission amount would be reduced by portion payable to the new buyer brokerage.
- Sets the commission amount that the Seller authorizes the Listing Brokerage to pay to a co-operate with any other registered real estate brokerage.
- Various disclosure and related procedures concerning representation, multiple representation and customer service.
Referral of Enquiries
- Seller to advise brokerage immediately of all enquiries and any offers to purchase from any source whatsoever during the term of the listing.
- Any enquiry during the listing period resulting in an accepted offer to purchase during the listing or the holdover period will result in the Seller paying the brokerage the commission within 5 days.
- Brokerage is authorized to market the property and permit prospective buyers to fully inspect the property.
- Can place “For Sale” and “Sold” signs on the property.
- Can identify the property in advertising.
- Sole and exclusive right to make all advertising decisions.
- Indemnification for acts or omissions in advertising other than gross negligence/wilful act
- Seller has all the authority necessary to sign the agreement.
- Seller has disclosed outside / third party interests concerning the property (e.g., first right of refusal).
Indemnification and Insurance
- The Seller will not hold the Listing Brokerage liable for loss or damage to the property or contents unless it was caused by the Listing Brokerage’s gross negligence or a willful act.
- The Seller will save harmless the brokerage for any “loss” caused by the Seller.
- Further the Seller confirms that the Seller has insurance to cover any injury or property damage that may occur.
Family Law Act
- Seller warrants that spouse has signed agreement if necessary
Verification of Information
- Brokerage is authorized to and Seller agrees to provide further authorizations as may be required to obtain information from any regulatory authority, governments, mortgagees, or others, and said authorities are authorized to release any and all information to the brokerage.
Use and Distribution of Information
- Permission to use personal and property related information for marketing, advertising, and listing on the MLS® database considering privacy laws.