What Must a Listing Agreement Include When Selling Your Home in BC?

When you hire a brokerage to sell your home in British Columbia, the paperwork you sign sets out what the brokerage will do and what you will pay. That document is usually called a listing agreement, and the rules call it a service agreement.

Reading it carefully before you sign is one of the best protections you have. This article walks through what the Real Estate Services Rules require it to contain, so you can check your own agreement against a list.

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, unless the prospective client waives it. It must be entered into before the brokerage represents you in offering the property.

In plain terms, you should not see your home advertised by a brokerage acting for you until the agreement is in place, unless you have chosen to waive the written agreement. Think carefully before waiving, because a written agreement is what lets you check the terms later.

What the agreement must state

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

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

The rules do not set a commission rate, and this article does not state typical rates, tax on commission, or when commission is considered earned. Those points depend on what your agreement says, so read that wording closely and review BCFSA's consumer guidance on remuneration. The same goes for how long a listing may last: check your agreement and confirm the current limits with BCFSA or a lawyer.

Changes, copies and disclosures along the way

Any amendment to your service agreement must be in writing and signed by you and an authorized signatory of the brokerage. A copy of any written agreement must be delivered to you immediately on execution. A verbal change is not enough, so ask for a signed amendment and keep it with the original.

Before providing trading services, a licensee must disclose, in the approved form, whether they will represent you as a client. If a party is unrepresented, the licensee must also disclose the limited assistance available and recommend independent professional advice.

When an offer is presented, a licensee acting for you must give you a disclosure, in the superintendent-approved form, covering several payments:

• Your payment to the listing brokerage.
• Any payment to a cooperating (buyer's) brokerage.
• The amount the listing brokerage keeps.
• Any other remuneration.

Money amounts in that disclosure must be stated in dollars.

Terms the rules do not allow

Remuneration based on the difference between the listed price and the actual sale price is barred. If your agreement promises the brokerage a share of any amount above your list price, that is a point to raise before you sign.

A brokerage also must not act for both seller and buyer in the same trade. The exception is a remote, under-served location where separate licensees are impracticable. There, dual agency needs prior disclosure to each party, a signed written dual agency agreement, and a copy of the disclosure sent to the superintendent.

What to do next

Before you sign, or if you already have, go through the agreement line by line. These steps can help.

• Confirm the property address, effective date and expiry date are correct.
• Check that the services and the remuneration, and when it is payable, are clearly described.
• If there is cooperating brokerage sharing, look for the breakdown.
• Confirm there is no pricing-gap commission.
• Make sure both you and the brokerage's authorized signatory have signed, and that you have your copy.
• Keep every signed amendment with the original.

If something is unclear, or the agreement is already causing a dispute, a real estate lawyer can review the actual wording and explain your options.

Frequently asked questions