What exactly is a listing agreement and what should I look for before signing?

A listing agreement is a written contract between you (the seller) and a real estate brokerage that authorizes the brokerage to market your property and sets out the terms of that engagement. In Ontario, listing agreements must be in writing to be enforceable, and they are typically on standard forms approved by the brokerage.

Key provisions to review before signing include: the listing price, the listing period (start and end dates), the total commission rate and the portion offered to the buyer's brokerage, the services the brokerage will provide (MLS listing, photography, staging advice, open houses), exclusions from the commission obligation (e.g., if you find your own buyer), and the holdover clause duration.

You should also look for any automatic extension clauses and confirm what happens if the property does not sell. Some agreements include clauses about using the property's data for advertising or future marketing that are easy to overlook. Do not feel pressured to sign a listing agreement on the spot. Taking it home and having your real estate lawyer review it before signing is a reasonable step, particularly if the commission or holdover terms are substantial.