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Residential Real Estate Listing Contract Highlights.
The Residential Real Estate Listing Contract used in Alberta is a document which provides clear guidelines for the contractual relationship between a home owner and the listing real estate company.
The form was developed by the Alberta Real Estate Association for the use of its members. The following is a breakdown of each section and what it means to you.
- Parties to the Contract
The top of the first page is for designating the parties to the contract, the home owner and the listing real estate company. The real estate agent who is going to represent you acts as a representative of the listing company and does not own the listing.
- Section 1. The Property. This section spells out where the property is located by its street address and legal description. It also spells out what unattached goods, ie: refrigerators, stoves, window coverings are included or excluded. The inclusions and exclusions are a negotiable part of the contract. It is at this point that you should decide which items you want to keep and which can go with the home.
- Section 2. Other Listing Contracts. This section is to disclose whether the property has been listed for sale in the previous twelve months and whether or not it is currently listed for sale with another real estate brokerage, which would cover such things as any exclusive listing contracts.
- Section 3. Expiry date. This is where the date that the contract will end goes, after this point it becomes an expired listing if it does not sell. There is a minimum 60 day listing period required by the Calgary real estate board and can go for as long as both parties agree.
- Section 4. Asking Price. Self explanatory, this is where the list price of your home is placed and whether or not any gst will be payable on the property. Gst would be payable only if the property were raw land, a vacant lot, a new home or an extensively renovated home.
- Section 5. Possession date. This is where we place the date most convenient for you to move out. It is recommended that this be a fixed date and/or a number of days 30/60/90 from a firm offer.
- Section 6. Real Estate Commissions. This section is broken down into two components. 6.1 is for the total amount of commissions to be paid out to both the listing and buyer agents and 6.2 separates the buyer agents portion from the total amount. Gst must be paid on the commissions generated from the sale of a home. All commissions are negotiable, however I do recommend offering a commission of 3.5% on the first $100,000. + 1.5% on the balance of the sale price +gst to the agent who brings in a buyer for your home.
- Section 7. Deposits. The listing real estate company is usually the holder, in trust, of deposit monies as spelled out in the purchase contract. This section provides direction to the listing company as to handling of the deposits upon completion of the sale, the amount is usually applied to commissions and covers the assignment of funds from the purchase price to cover any extra amounts.
- Section 8. The Brokerage's Authority. You, as a seller, get the choice as to whether or not a key box and signs are placed on your property. This section gives the brokerage authority, or not, to do these things. This section also gives the Brokerage exclusive rights to advertise the property unless otherwise agreed to in writing.
- Section 9. Important Information. This section calls for the seller to provide a tax report for the property, a current copy of the title and all its registrations, a current real property report with municipal compliance and pertinent information with regards to mobile homes, rental properties, country residential acreages and condominiums. There is also a space to authorize the Brokerage to obtain the information for you, acting as your agent. I do a tax search and pull title for my clients and provide the necessary guidance for the other requirements. If your property has a mortgage on it, this section calls for a mortgage verification statement to be done and also asks if it may be assumed or if it is CMHC insured. The final part of this section covers a very important document that has become a standard in a real estate transaction and that is the provision of a property disclosure statement. This statement is intended to provide a purchaser with an overview of the homes condition and is an opportunity for the seller to advise on any past or ongoing problems with the property.
- Section 10. Duties of the Seller. This section covers terms under which you will pay out commissions, timing for said pay outs and alternative compensation should a deal not be completed after firming up. Payment of gst on the commission or alternative compensation amounts are also covered. You must also ensure the property remains insured. This section also calls for your cooperation with the listing Brokerage and any other brokerages, ie: for showings and for you to inform the listing Brokerage of any changes to all important information that may occur after the listing contract has been signed.
Section 11. Duties of the Brokerage. We will make reasonable efforts to find a buyer for the Property, I use exceptional efforts. We will market the Property through th Multiple Listing Service operated by the Board, I also use the internet to go beyond just the MLS. We will cooperate with other industry members to sell your home including those who are non-Board members. We will pay out all monies owing to another brokerage on the sale of your home.
Section 12. Security for the Brokerage's Fees. This section covers what options there are for the listing brokerage and the buying brokerage should there be a problem with the payout of the commissions and other fees, including placing a caveat on title.
Section 13. Seller's Warranties. This where you, the seller, have ther right to sell the property subject to dower rights, the right to sell all Unattached Goods and that all such goods are free and clear of financial encumberances. You also warrant that you have complied with the bylaws of the Condominium Corporation if your home is a condo. You also warrant that to the best of your knowledge you have disclosed all information necessary to truthfully and accurately market the property, including any environmental problems. You would use a property disclosure statement to cover off on these areas. This section also calls for you to warrant that the property and all outbuildings and exterior attachments comply with existing municipal land use bylaws and are positioned properly on the property. If you are selling a condominium, these warranties extend to and include the condo's common property.
Section 14. Ending the Contract. The contract can be ended if the Brokerage has its licensed suspended or cancelled, is no longer a member in good standing at the Board or is bankrupt, insolvent or in receivership. The contract also can be ended if one party breaches terms and is provided written notice of termination. This section also has a survival clause of some portions of the contract in event the contract is cancelled.
Section 15. Additional Terms. This contract is deemed to be binding on survivors and assignees of the parties and all changes to number and gender will be made where required. It defines this contract as a Seller's Brokerage Agreement for the purposes of the Alberta Real Estate Act.
Section 16. Advice to the Seller.
16.1 This Contract creates binding legal obligations. You are free to obtain legal advice befor signing.
16.2 The amount of the Real Estate Commission and Alternate Compensation are not fixed by law.
16.3 If a CMHC mortgage is to be assumed, you should seek legal advice.
16.4 Information relating to the Property may be disclosed to real estate boards for publication in their MLS services, and to persons interested in the Property including prospective buyers, their advisors, all industry members and municipal authorities.
Section 17. Agency Disclosure/Acknowledgement. This section spells out the agency conditions which may arise and authorizes the Seller's agent to act in Dual Agency. The bottom line is buyers represented by other brokerages owe you no fiduciary duties, while the listing agent does. In the case of dual agency the selling and buyers agent are the same and the agent will not, without prior written authorization, disclose any information pertaining to price or motivations to either party and will not disclose to a buyer the terms of any competing offers.
Section 18. Signatures. The all important signatures to the contract and the date it was made. This section also equates a fax copy of the contract to an original copy of the contract.
Final notes. The last half of the final page spell out the requirement for dower consent and the important information required for mortgage verification and the sale of Condominiums, Country Residential Acreages, Rental Agreement Details and Manufactured/Mobile Home Details. If you would like more information on what these details are contact me by e-mail or phone at 403-870-3609.
The Listing contract is a detailed document developed over time and revised periodically to make sure all parties to a real estate transaction are protected. After the Contract has been finalized, the seller and the Brokerage need to make all efforts to bring the home onto market as soon as possible.
To get started on selling your home, send me an e-mail.
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This page last updated June 20, 2005
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