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.

• 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.

• 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:

• 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. 

• Property Tax Receipts - The Listing Agreement requires that the current annual property tax assessments be shown. 

• 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. 

• Deed or Title Search - This document is a legal description of your property and proof that you own it. 

• 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.