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Exploring
a sustainable development future for the
Niagara Region
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Putting
Your Home on the Market
The relationship between a Realtor and a
Seller is established in the listing agreement. It is a contract
between the seller and the listing broker describing the property to
be sold and the terms under which it is to be sold. Normally
it is completed in your home. Measurements will be taken of
your rooms. |
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The listing agreement is on a
standard
form provided by the local real estate board and must
comply with their regulations. You are appointing a realtor to
market
the property for a specified
length of time and agree to pay them a commission (usually
a percentage of the sale price) for bringing an acceptable offer from
a purchaser. -
On an MLS listing the listing broker
agrees to share the commission with the
co-operating broker who brings the offer from the buyer.
You should discuss with your realtor how the commission will be split
and how much they offer to the selling agent and whether they deduct
marketing fees. This is a growing practice especially when commission
rates are reduced.
Commissions are
negotiable. The total commission is kept confidential so no
one knows for sure what the listing agent is paid and this is subject
to negotiation. -
You must also indicate whether you want
the property to be advertised only
by the listing broker or whether to allow other agents to advertise
it.
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There is usually a holdover
clause stating that if a buyer who was introduced to the
property during the listing buys the property within a stipulated time
period after the expiry of the listing you will still have to pay
commission to the realtor. This is to protect the realtor from the
situation where the buyer and seller make a private deal to wait until
the listing expires to avoid paying the realtor who introduced the
buyer to the property
The following documents may be required:
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Plan of Survey or
Location Certificate - A survey of your property which
outlines the lot size and location of buildings as well as details of
encroachments from neighbouring properties. This may be required in
certain areas to complete the sale of your home. You may recommend
that you obtain a survey, especially if significant changes have been
made to your property.
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Property Tax
Receipts - The Listing Agreement requires that the current
annual property tax assessments be shown.
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Mortgage
Verification - Few homeowners know the exact balance on
their mortgage as it is paid down. You will be asked to authorize your
mortgage lender to provide the figures required. If you will be
discharging your mortgage this will show you any penalties that apply.
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Deed or Title
Search - This document is a legal description of your
property and proof that you own it.
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Other
Documentation - In some instances, it may help the sale of
your property if you can provide prospective buyers with information
on such items as annual heating, electrical, and water expenses, as
well as any recent home improvement costs.
Statement of
Disclosure - you will be required to sign a property
condition disclosure statement. It is not mandatory in Ontario but is
a good idea and is becoming expected by the purchaser.
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