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There are many components that make up a listing agreement. See below for a list of the terms and a corresponding definition:
Listing Authority & Term
Describes the legal relationship between you and the real estate brokerage, and sets a time limit for the REALTOR® to sell your home.
Multiple Listing Service®
Confirms whether or not your home will be listed on the Multiple Listing Service®. This will allow your REALTOR® to put your home on the local real estate board’s MLS®s system, which serves as a marketing tool to REALTORS® and Buyers alike.
Confirms the listing price that you have set for your property with knowledge of the current market conditions and the aid of your REALTOR®. Refer to Step 4 (Link) for more details on pricing your home.
Listing Brokerage Remuneration
The compensation that has been negotiated between you and your REALTOR®’s brokerage. The listing agent usually assigns a portion of the remuneration that is paid to the cooperating brokerage that brings a Buyer to your property.
This aspect sets out the marketing process that will be assigned to effectively market and sell your home. This will include the specific forms of marketing that will be employed: internet, print media, social media, agents opens & open houses, for example.
A physical description of your property, as agreed upon by you and your REALTOR®. Your REALTOR® will itemize the lot size, your home’s age, the style of construction, number and size of the rooms, and any unique selling features such as an outstanding view or a fabulous kitchen renovation.
This aspect relates to the important financial figures, such as the minimum deposit you require, or a low-interest rate mortgage that can be assumed.
Showing Your Home
You and your REALTOR® will discuss the details of showing your home in person, such as when the home will be available to show, any “off-limit” times, and availability for evenings and weekends.
Exclusions to a Purchase (Chattels & Fixtures)
Chattels are items that can be easily removed. For example, a stove is considered to be a chattel, as it can be unplugged from the wall and removed. A dining room chandelier, on the other hand, is considered to be a fixture, as it is literally affixed to the ceiling. Chattels are not automatically included, although in certain circumstances, it is anticipated that appliances are included in the sale. However, a Buyer agent will write those items on a contract of purchase and sale to ensure clarity. If there are any fixtures that you would like to keep and take with you, you must ensure that this is clearly communicated to your agent so there is no confusion when it is time to negotiate an offer.
Property Condition Disclosure Statement
You will be asked to answer questions about your property to the best of your knowledge, and to which the Buyer will rely in the information provided. Your REALTOR® will provide you with information about the property disclosure statement.
As part of the listing agreement, you will be asked for identification and verification that you are the owner of the property that is being listed. The REALTOR® is required to document that information in addition to your occupation. The purpose of FINTRAC is to protect all parties against real estate fraud. For more information, you can visit the FINTRAC website.
A survey of your property that outlines the lot size and location of buildings, as well as the details of encroachments from neighbouring properties.
Property Tax Receipts
Most listing agreements require that the current annual property tax assessments be provided and shown.
You may be asked to authorize your mortgage lender to provide your REALTOR® with the required documentation to verify your existing mortgage agreement.
Copy of Title Search
This document must be included; it is a legal description of your property and proof that you own it.
Verification of Tenancy Agreements
If your home – or a portion of your home – is rented, you will be asked to provide a copy of the tenancy agreement.
Oil Tank Certificate
If your home has had an oil tank on the property that was removed, you will be asked to provide a copy of the certificate of removal for verification that there is no soil contamination.
This additional documentation may include your annual heating, electrical and water expenses, as well as any records of recent home improvement expenses.
This is 5th of 5 Blog posts in Step 6 of a 10 Part series. Go to Step 7: Marketing and Showing your Home
by Faith Wilson
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