Everything Sellers Need to Know About Listing Agreements

If you’re planning a home sale, your mind is probably on all of the steps you need to take to attract a potential buyer. Cleaning, minor repairs, and staging all play a critical role in a successful outcome. However, you can’t neglect the business details of the transaction.

A real estate agent can be your partner in success throughout this journey. Still, even this relationship requires documentation to protect all parties involved. In this post, we’ll talk about what a listing agreement means and what you need to know before signing.

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How Real Estate Works in Alberta

Canada-wide, several councils and laws exist to protect anyone who is working with a real estate agent. The specifics in each province may vary. However, all aim to increase transparency and improve the experience of buying or selling a home.

The Real Estate Act (REA) governs all residential and most commercial transactions in Alberta. They also cover property and condo management and oversee mortgage brokerages. All industry professionals are expected to conduct transactions with the highest degree of ethics under this legislation.

The Real Estate Council of Alberta (RECA) is the regulatory body that administers the REA. Their role is to protect consumers by setting education and licensing standards, regulating industry professionals, and investigating complaints about agents or brokerages.

Edmonton has its own REALTORS® Association of Edmonton (RAE –not to be confused with REA). This professional association provides education and resources for agents, which in turn empowers them to better serve their clients.

Looking for more tips on how to prepare your house for the Edmonton market? The posts below will give you some ideas:

What Is a Listing Agreement?

Presuming you decide to work with a Realtor®, a Listing Agreement is a contract you will sign before they have the authority to sell and market your property. Once both parties agree, your agent and their brokerage will be under a fiduciary duty to represent your interests.

Some terms and clauses of the contract are open to negotiation. However, all listing agreements will clearly outline the following:

A concise description of the property
The listing price
The length of the contract, typically 3 to 6 months
Commission rate and structure
Marketing plan

Cancellation terms can also be included in a Listing Agreement that will clearly state under which conditions either the seller or the real estate agent can void the contract. If no cancellation terms exist, the agreement will automatically expire once its duration is complete. The contract is considered null and void after that date, whether or not the house has sold.

If the contract is cancelled, there may be a holdover period that entitles a real estate agent to a commission if they had introduced the property to someone who later makes a purchase. Once both the Listing Agreement and holdover period are over, the client is free to move on to another agent and brokerage.

Since RECA mandates transparency and clear expectations, all Listing Agreements must be in writing.

Types of Listing Agreements in Edmonton

There are different types of Listing Agreements depending on the brokerage and type of real estate service.

1 – Exclusive Seller Representation Agreement

An Exclusive Seller Representation Agreement is by far the most common in Edmonton. It grants the brokerage the exclusive right to sell the property while the contract is live. The seller will pay the agreed-upon commission regardless of who brings a buyer.

This type of contract is favourable to all parties as it ensures the highest level of service to the client. Under this agreement, the agent has the full backing and support of the brokerage, as well as the most incentive to sell the property.

2 – Mere Posting

A Mere Posting offers minimal services from a real estate brokerage. They will post your listing on the MLS® on your behalf. However, the homeowner is responsible for nearly every other aspect of the sale. It’s your job to take care of preparing the home and to handle all appointments and negotiations with potential buyers.

You’ll also be responsible for most marketing tasks, such as arranging for photography and managing social media and online advertising. If you have extensive experience and expertise, a mere posting can give you more control over the process and save on real estate commissions. Otherwise, selling your home with limited support can be a frustrating and time-consuming experience.

Looking for more home-selling help? I have several FREE guides you might find helpful! Download them right here:

Why Work With a Real Estate Agent at All?

Though nothing is preventing you from selling your house on your own, working with the right real estate agent comes with several advantages. First, think of how much time and effort are required, then imagine fitting all those tasks into your already busy schedule.

You’ll need to clean and declutter your home, make strategic repairs, and do all of the staging yourself.
Showcasing the home to potential buyers requires long hours and being available day and night until you receive an offer you like. This is particularly challenging when you have a career or engaging family life.
All real estate transactions require extensive paperwork and legal contracts that you need to understand fully before signing.

Beyond the work involved, a high level of expertise is needed if you want to earn the highest possible selling price for your home. This means knowing what repairs are most likely to pay off, how to price your home for the market based on current statistics, and having the ability to negotiate with potential buyers.

Even if you don’t have a real estate agent, your potential buyer almost certainly will, and their mission is to get the lowest price for their client. If you want the best selling experience and an outstanding result for the market, having representation of your own is essential.

Do you want personalized guidance throughout the selling process? Give me a call at 780.910.1317, email me at jolene@jolenelangelle.com, or fill out the form on this page to get in touch!