Signing a Listing Agreement to Sell Your Home in BC: What It Must Include

Signing a listing agreement is usually the first formal step in selling a home through a brokerage. It sets out what the brokerage will do for you and what you will owe it, so it is worth reading slowly before you sign.

This article walks through what British Columbia's Real Estate Services Rules require the agreement to contain, three related rules that protect sellers, and a short list of things to check before you put your name on it. It is general information, not advice on your own agreement.

This article covers the law of British Columbia.

When a written agreement is required

A brokerage that provides trading services to an owner offering real estate for sale must have a written service agreement, often called a listing agreement. The exception is where you, as the prospective client, waive it.

The timing matters. The agreement must be entered into before the brokerage represents you in offering the property. If someone asks you to sign after the property is already being marketed for you, that is a good moment to ask questions.

What the agreement must say

The agreement must be signed by you and by an authorized signatory of the brokerage. It must also state specific details:

• The property address.
• The effective date and the expiry date.
• A description of the services the brokerage will provide.
• The remuneration (what the brokerage is paid) and the circumstances in which it becomes payable.
• If the listing brokerage shares its remuneration with a cooperating brokerage, the breakdown of that split.

If any of these items is missing or unclear, ask for it to be added before you sign.

Changes and your copy

Amendments to a seller's service agreement must be in writing and signed by you and an authorized signatory of the brokerage. A verbal promise to change the terms does not meet that requirement.

A copy of any written agreement must be delivered to you immediately on execution. Keep it somewhere safe, along with any later amendments.

Three related rules that protect sellers

• Gap-based pay is banned. Remuneration based on the difference between the listed price and the actual sale price is barred.
• Dollar disclosure on offers. When presenting an offer, a licensee acting for you must give you a disclosure, in the superintendent-approved form, of your payment to the listing brokerage, any payment to a cooperating (buyer's) brokerage, the amount the listing brokerage keeps, and other remuneration. Money amounts must be stated in dollars.
• Client status up front. Before providing trading services, a licensee must disclose, in the approved form, whether they will represent you as a client. If you are unrepresented, the licensee must also disclose the limited assistance available and recommend independent professional advice.

Also be aware that a brokerage generally must not act for both seller and buyer in the same trade. A narrow exception exists for remote, under-served locations where separate licensees are impracticable, and it requires prior disclosure to each party, a signed written dual agency agreement, and a copy of the disclosure sent to the superintendent.

What to check before you sign

• Is the property address correct?
• Are the effective date and expiry date both written in, and do they match what you discussed?
• Does the description of services say what the brokerage will actually do?
• Is the pay clearly set out, along with exactly when it becomes payable?
• If the brokerage will share pay with a buyer's brokerage, is the breakdown shown?
• Does anything tie the pay to the gap between list price and sale price? If so, ask about it.
• Have you been told in writing, on the approved form, whether you are a client?
• Are both signatures present, and will you receive your copy immediately?

The agreement must state an expiry date. How the commission amount, any tax on commission, and the length of the listing apply to you depends on your situation and your own document, so it is worth confirming them with a lawyer or accountant. If anything is unclear, a lawyer can review the agreement with you before you sign.

Frequently asked questions