Encyclopedia
Listing agreement
The contract between a seller or landlord and a brokerage to market a property.
For example: A landlord reads the listing agreement's term and commission terms before signing. (Illustration only, not a real deal.)
Official source: Real Estate Services Rules (BC Laws)
Example only, not a real client. Say you decide to sell your office building. We sign a listing agreement that sets the price, the marketing plan, the term and how I am paid. You know exactly what to expect before the property goes on the market.
What I’d tell a friend
Read a listing agreement before you sign. Check the term, the duties and what happens if you want to end it.
Why it matters to you
It decides how long your agent has to sell, what they're paid and what happens if you sell to someone on your own. A long term or a wide holdover clause can mean paying a commission even after you've moved on, so read both before you sign.
How to use it in your deal
Owners should read the term, exclusivity, commission formula, and holdover clause, which may require commission if you deal with someone introduced during the listing after it ends. Agree on marketing plans: signs, listing services, brochures, data rooms and who pays for them. Check how commissions are split with cooperating brokerages and whether a different rate applies if the listing brokerage finds the buyer.
Ask about the licensee's experience with your property type. Understand termination rights if the brokerage doesn't perform. Licensees must follow BC Financial Services Authority (BCFSA) rules, including disclosure of any conflicts. Get a copy of the signed agreement and diary the expiry date.
Sellers should tell the brokerage about any buyers already in discussion, and exclude them in writing if needed, so you don't pay commission on a deal you found. Ask for regular written updates on showings and feedback. Read it twice before signing. Check what happens if a buyer the agent introduced comes back after the agreement ends, and whether you can end it early.
Mistakes I see
Ignoring holdover. Unclear marketing duties. Not excluding existing prospects.
In BC and Vancouver
The Real Estate Services Act and BCFSA rules govern listing agreements.
Official sources: Real Estate Services Act (BC Laws) · Real Estate Services Rules (BC Laws) · BC Financial Services Authority
What it is
A listing agreement is a contract between a property owner and a brokerage to market and sell or lease a property.
It sets out the term, the price, the services provided and how the brokerage is paid.
What to check
Look at the length of the term, any holdover period after it ends and the conditions for cancelling.
Ask about the marketing plan, reporting and who will handle showings and offers. I can walk you through mine.
Questions to ask before you sign
- How long is the term?
- What's the commission?
- What's the holdover?
- What marketing is included?
Keep reading
Related terms: Commission, Agency
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.