realtylinkonline

January 2002

What form is what? Documents you'll see when buying and selling a home

"Working with a real estate agent"

Buyers and sellers will be presented with this brochure early in their contact with a real estate agent. Industry regulations have made it mandatory for a real estate licensee to disclose how he or she is working with you. This means is the REALTOR® representing the buyer, the seller or acting as a dual agent. The agent will ask you to sign a statement acknowledging that this disclosure of agency representation has taken place. He or she will keep the signed statement and you will be given the brochure for future reference.

Signing the disclosure statement in the Working with a real estate agent brochure does not bind you to any obligation; it confirms that you have discussed your agency representation options with the agent.

MLS Listing Contract

The Multiple Listing Service Listing Contract outlines the terms of the listing contract, including the length of time for the listing, the price, the commission to be paid, all the parties to the listing, the address an legal description of the property to be sold, how the seller is to be paid, the preferred possession date, the financial obligations and other information regarding the property.

The listing agreement is the seller's agreement with the listing agency, not the salesperson individually. If the salesperson leaves that company, it is up to the seller and the listing company to decide whether or not the listing will go with the salesperson, or whether it will stay with the original company and be assigned to another salesperson.

As with other services, there is GST payable on commission, so when you are calculating your proceeds, take that into consideration.

Property Condition Disclosure Statement

This form is filled out by the seller indicating his or her knowledge of various aspects of the property, any defects, which the seller is aware of, and any upcoming expenses (such as special assessments in strata-titled properties).

For a listing to be placed on the Multiple Listing Service (MLS), this form must be filled out by the seller, not the REALTOR®. The form does not cover every aspect of the property. A buyer is still advised to consult an independent inspector if there are any questions or concerns that are not adequately answered.

Limited Dual Agency Agreement

This form is used when the agent represents both the buyer and the seller in a single transaction. It is used when the situation involves either one salesperson who represents both the buyer and the seller, or when two salespeople from the same company are involved.

This agreement modifies the prior Listing Contract and the Buyers Agency Contract (or verbal buyer's agency agreement) and gives the agent the authorization to represent both parties in a limited capacity. It allows the agent to maintain both parties' confidences regarding motivation, negotiating positions and personal information (unless either party gives the agent written permission to disclose such information).

Contract of Purchase and Sale

The Contract of Purchase and Sale standard form is the basic contract signed by the parties (the sellers and the buyers). It outlines every aspect of the transaction, including the price, the terms and conditions, the dates, the inclusions and exclusions, the handling of existing tenancies, the deposit and increase (where applicable) and other legal matters as described in the pre-printed contract and added as clauses.