RECO has a new guide, which is effective from December 1st, 2023.
Compared to the brokerage representation, Designated Representation reduces the probability of occurrences of Multiple Representation. The relevant part of the designated representation will be indicated in the listing agreement.
For details on the change and new regulation and practice, Please click and refer to RECO Information Guide
A Listing Agreement in real estate also called a Seller Representation Agreement, is a contract between the home seller and the real estate brokerage who represents the homeowner to sell the property after the agreement is signed. OREA Form 200 is commonly used in Ontario.
The sellers require to sign Form 200. Any cancellation or termination of the Listing Agreement requires a mutual release and the signing of Form 242.
Most properties are sold via MLS (Multiple Listing Service) in the current market. This is the system where realtors can post your properties and other realtors can find properties.
Another way to sell the property is using the Exclusive Listing Agreement, which has the following characteristics:
The agreement is between the seller and the agent’s brokerage; the salesperson is acting on behalf of the brokerage.
The agreement time validation is negotiable. In the case of an MLS® listing, the real estate board has a minimum requirement of 60 days. In case it is beyond 6 months, the seller should be reminded of this and put an initial sign there.
The sellers acknowledge and warrant that they are not under agreement with any other agent/brokerage.
Seller is equivalent to vendor
The seller agrees that the seller brokerage may take other incentives, referral fees, or reward
The short description is that Multiple Representation happens when the agent has 2 or more clients in the same deal. To avoid the conflict of interest, RECO outlined and regulated it closely. There are a number of rules applied, which are listed in the agreement.
The listing brokerage is allowed to show, place "For Sale" and "Sold" sign(s), and the marketing decisions. The listing brokerage is not liable for the market effort and activities.
The Seller has the exclusive authority and power to sell the property and has informed the brokerage of any claims on the property
The seller’s agent or brokerage is not held liable for the condition of the property or damages that may occur during showings. The seller’s property is properly insured.
The Seller hereby warrants that spousal consent is not necessary.
The listing brokerage and salesperson are authorized and appointed to obtain and use any reasonable information regarding the property.
Successors and assigns are bound by the agreement if the buyer dies.
The added provision to the agreement supersedes the pre-print clauses
Additional clauses and terms are listed in the schedule attached to the agreement
Electronic Communication is applicable, ELECTRONIC SIGNATURES is applicable
The salesperson has insurance coverage required by RECO
This guide helps you understand the terms commonly used in the agreement.
This guide is not drafted by the lawyer, it is from an agent’s interpretation and perspective. Please check and verify with your real estate lawyer for completeness and accuracy.