The process of selling a home with a realtor begins with the listing agreement. It is a contract between you and the real estate company that the realtor represents. It is a framework for subsequent forms and negotiations. It is important that the agreement accurately reflects your property details and clearly spells out the right and obligations of all parties. Both you and the listing realtor sign the listing agreement and each receives a copy. This agreement binds both parties to its terms and conditions. (Courtesy of the Canadian Real Estate Association).
Terms and Conditions
Generally in the agreement you appoint the real estate company as your real estate agent and give its representatives the authority to find a buyer. The duration of the agreement is indicated and the compensation is specified. The agreement also sets out the listing price and accurately describes the real estate property you are selling. That will include lot size, building size, building style and materials, floor areas, heating/cooling systems, room sizes and descriptions. (Courtesy of the Canadian Real Estate Association).
Inclusions and Exclusions
This is when you must decide what you are taking with you and what you are leaving with the home. Generally, unless otherwise stated, fixtures remain with the property, while chattels (things which are moveable) are not included in the sale. If necessary what stays and what goes are listed under inclusions or exclusions. (Courtesy of the Canadian Real Estate Association).
Other Terms and Conditions
Finally, the listing agreement also details the financial conditions of the property, including the mortgage balance, mortgage monthly payments and the mortgage due date. It should also provide information about annual property taxes and references for any easements, rights of way, liens or charges against the property. (Courtesy of the Canadian Real Estate Association).
Real Estate commission
Member Boards and associations of the Canadian Real Estate Association support free and open competition. They believe in the principles embodied in the Competition Act of Canada. Therefore, they adhere to a Code of Conduct which includes: 1. Commission rates or fees members charge for services offered to the public and the division of those fees among cooperating members are solely the choice of those providing the service. 2. A real estate brokerage may offer any variety of service such as exclusive, open or multiple listings regardless of the price, commission rates or fees or the division thereof. (Courtesy of the Canadian Real Estate Association).
1. Higher Commission vs. Lower Commission
Commission rates or fees are negotiable between you, your realtor/ real estate broker. Find out what level of service will be provided and what your financial and legal obligations are before signing any documents.
2. When is Real Estate Commission Payable?
You will have to pay a real estate commission only when you reach an agreement with a buyer and the sale completes. Once ownership transfers the commission will be paid by your lawyer or notary from the proceeds of the sale.