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Listing
Contracts
Once you have selected an agent to work
with, the agent will use market research
along with his or her knowledge and
expertise to assist you in setting the
best possible listing price for you home.
However, you must keep in mind that the
price you set must be attractive to
potential purchasers under the current
market conditions.
Before finalizing the listing price,
you may wish to ask your selected agent to
prepare an estimate of the net cash
proceeds you will receive on completion of
the sale, based on the suggested listing
price and the financing arrangements
currently in place.
After a listing price has been
established, you will be asked to sign a
LISTING AGREEMENT.
Types of Listing Agreements
In British Columbia, the two most
common types of listing agreements are:
| The exclusive listing
The Multiple Listing |
Each type of listing lasts only for the
time period that is specified in the
agreement.
An Exclusive Listing gives the listing
agent the sole right to sell the property.
This means that even if you sell the
property to a prospect of your own during
the term of the listing, you must pay the
agreed commission to the listing agent,
unless that prospect was specifically
excluded on the listing agreement.
The listing agent may agree, at his or
her option, to share the commission with
any other real estate licensee who is able
to find a buyer for your property. The
other licensee will be referred to as the
selling agent.
You should also be aware that even
after the exclusive listing expires, you
may be obligated to pay the listing agent
a commission if you sell your property to
a person who purchases because of the
agent’s actions during the time of the
listing.
A Multiple Listing differs from an
Exclusive Listing only in that the listing
agent agrees to register your home in a
Multiple Listing Service (MLS)
In this case, the listing agent agrees
to share a specified amount of the
commission with any other member of the
real estate board who is able to find a
buyer for your property.
Discuss your objectives with your agent
before deciding which type of Listing
Agreement will best suit your needs.
Terms of the Listing Agreement
The Listing Agreement legally defines
your arrangement with the agent, setting
out, at minimum:
| the price and terms
at which you are willing to sell your
home.
the existing financing arrangements
and whether this financing can be
assumed by a new owner.
a list of items attached to the
building (normally called fixtures)
which are not to be included in the
sale; for example, a fireplace insert
or a crystal chandelier.
the date on which you can give
possession of the home to a new owner.
the commission payable to the agent
on the completed sale of your home.
the time period for which the
agreement will be in effect ending on
a specific calendar date. |
BEFORE you sign the Listing Agreement
ensure that:
| All the spaces have
been completed to your satisfaction.
You have a thorough understanding
of all of the terms it contains. |
The agent will provide you with a copy
of this agreement that you should keep for
further reference.
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