CONFUSED ABOUT THE LISTING AGREEMENT?
HERE'S SOME HELP WITH IT.
The "Listing Agreement" is the contract between you and the real estate brokerage authorizing the brokerage (and its broker and salespersons) to market your property. This agreement:
- establishes the basis for the relationship between you and the real estate brokerage, setting well defined limitations on the agent's authority
- provides detailed information about your home. This information is submitted to the Multiple Listing Service (unless you have opted for an Exclusive Listing) and also assists the Realtors in answering inquiries from prospective buyers who respond to ads or visit your home
- forms the basis for drafting an offer on your home and the negotiations involving the offer.
SOME TERMINOLOGY OF THE LISTING AGREEMENT
When you list your home with a Realtor, the Listing Agreement is used to spell out the details of the property and terms and conditions of the Agreement.
Here are some of the Sections on the Listing Agreement:
The Authority: This section establishes the legal relationship between you and the real estate broker, sets a time limit for that relationship and describes the obligations of each party.
Listing Broker's Name: The name of the real estate broker to whom you are giving exclusive authority to act as your agent in the sale of your home.
Property Description: Your property is fully identified including a complete legal description. Last day of the Agreement: You are granting authority to your broker for a specific period beginning on the date you sign the agreement and ending at 11:59 p.m. on the specific date.
Price: Specified in words and figures to avoid possible error. Real Estate Commission: This is usually a percentage of the final sale price that you agree to pay to the listing broker in return for delivering an acceptable offer on your property. The wording also says that if your property is sold within a specified number of days after the last day of the agreement, and the buyer was introduced to your property while the agreement was still in effect, the commission will be payable to the listing real estate brokerage in accordance with the terms of the listing agreement.
Other Provisions: The language here covers other obligations you and listing broker have under this agreement such as: all inquiries that you receive about your property must be referred to the listing broker. The broker is permitted to place a For Sale sign on the property and to show prospects through your home during reasonable hours. If a second Realtor is involved in the final sales transaction, that Realtor's commission will be paid by the listing broker.
Detailed Particulars about your Property: Your home is described in detail, as are the terms you would ideally like to see in an offer to purchase it. In order to complete this section of the Listing Agreement, your Realtor will conduct a thorough physical examination of our property, as well as any legal documents you may have that relate to your home. These usually include the title deed, survey, mortgage documents and tax notices.
Your Realtor will fill in all the details: Legal description. In addition to the street and house number, it's necessary to specify the lot and plan numbers if the property is in a registered subdivision. Otherwise, the lot and concession number should be listed, accompanied by a survey or sketch of the property showing location of all the buildings.
Size of the lot: Precision is essential here. The dimensions are usually taken from your title deed, mortgage documents or survey. If the lot is irregular in shape, a survey is very important.
Building age: Most buyers want to know when your home was built. If you're not sure about the home's age, your Realtor may be able capable of accurately estimating its age by the construction style or materials, or by checking local municipal records.
Type of Construction: This is whether your home is made of solid masonry or wood frame with brick or stone veneer. The type of siding (wood, aluminum, stucco etc) will also be listed
Style and number of rooms: The type of home you are selling is described here. Rooms and their sizes are recrded on the listing.
Zoning and District: It is important to specify the zoning code on the listing form because prospective buyers may be concerned about the legality of the present use of the property or may be considering changing its use.
Room Sizes: Even if you already have an old floor plan showing this information, your Realtor will want to measure again. Buyers care about these details since it often affects their use of certain pieces of their furniture in your home.
Features and Remarks: Here the Realtor will list features that may be important to prospective buyers, such as "backs onto a ravine" or "quiet, dead end street". Chattels included in the Sale: Chattels are moveable pieces of personal property, such as a portable dishwasher or microwave oven that may be included in the sale unless you specify otherwise.
Fixtures Excluded from Sale: Fixtures are permanent improvements to your property, such as built-in appliances or light fixtures that are included in the sale unless you specify otherwise.
Completion Date: It's impossible to pre-determine the exact date your home will be sold. The completion date, also known as the `ClosingDate” is a guideline of when yoy would prefer to move . The completion date might be listed as 60-90 days ( an indication that you are somewhat flexible).
