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What is a listing agreement?

The process of selling a home with a REALTOR starts with the Listing Agreement.

• It’s a contract between you and the brokerage company that the agent represents.
• It is a framework for subsequent forms and negotiations.
• It’s important the agreement accurately reflects your property details and clearly spells out the rights and obligations of all parties.
• Both you and the listing agent sign the listing agreement and each receives a copy.
• The agreement binds both parties to its terms and conditions.

What is the main idea about this agreement?
Generally, in the agreement you appoint the brokerage company as your agent and give its representatives the authority to find a purchaser.

• The duration of the agreement is indicated, and the compensation is specified.
• The agreement also sets out the listing price, and accurately describes the property you are selling.
• That will include the lot size, building size, building style and materials, floor areas, heating/cooling systems, room sizes and descriptions.
• This is when you must also decide what you are taking with you and what you are leaving with the house. Generally, unless stated otherwise, fixtures remain with the property, while chattels — things which are movable — aren’t included in the sale. If necessary, what stays and what goes are listed under “inclusions” or “exclusions.”
• 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.                                                                                                                         

What is the responsibility of the real estate broker to me?
A realtor must disclose to you in writing who exactly they represent in any real estate deal.

• A realtor may represent you as a buyer or a seller; he or she may also represent both buyer and seller in the same transaction.
• Because all realtors are guided by a stringent Code of Ethics and Standards of Business Practice, a realtor will always treat you fairly.
• As your agent, the realtor owes you the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss agency with your realtor.
• If a realtor is showing you homes, they are automatically deemed to legally be your agent, and owe you all of the associated obligations.

What do I need to decide when I’ve decided to buy a home?
If you have decided to buy a home, start by determining what type of community, or specific neighbourhood, you are interested in. List your space needs, including:

• living space requirements (i.e. how many bedrooms);
• what you’re bringing with you from your old house;
• how close to schools, shopping and other services;
• the size of down payment you can afford; and,
• price range.                                                                                                           

How will a real estate broker help me find my dream home?
Once you’ve identified the features you want in a home, the search begins.

• A REALTOR will use various tools to try and find properties that meet your specifications.
• One of the important search tools will be the local MLS^® system.
• By sitting down at a computer the REALTOR can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS^® system.
• Also common are MLS^® catalogues, which provide additional information about each property, along with its photograph.
• Both computer systems and catalogues are updated regularly.

How do I decide my price range when buying a home?
It’s important to be realistic when you’re thinking about a down payment and setting a price range.

• You don’t want to be saddled with something you can’t afford.

• At this stage, it’s a good idea to talk things over with a real estate sales professional.                                                                                 

Once I find a house I like, what would be the next step?
Once you find the house you want to make your home, you can work with a REALTOR to develop an offer.

• In the offer, you should specify how much you’re willing to pay.
• State when the offer expires, and suggest a closing date for the transaction.

You can also propose some conditions on the offer. Some common types of conditions are:

• getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
• selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
• the seller providing a current survey, or a “real property report,” showing the location of the house on the property owned by the seller and that there are no encroachments;
• the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
• if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards;
• if you still have any doubts about the home’s safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer;
• any inclusions – basically, what stays and what goes.                                              

What will I need to bring with my offer?

• You will need to present a deposit along with your offer.
• An appropriate deposit will show your good faith to the seller.
• The seller’s agent is bound by law to bring all offers to the seller’s attention.

After your offer is accepted and all the conditions are met, the offer becomes binding on both sides.

• If you walk away from the deal at that point, you may lose your deposit.
• You may also be sued for damages.
• Therefore make sure you understand and agree with all of the terms of the offer before signing.