There are mainly two ways to sell a property in Canada, it can either be done by approaching a real estate agent, also known as a realtor, or it can be done privately. If you want to approach a realtor to help sell your property, then you would need to sign a contract with them first. The contract in question will basically define how long your property will be listed with the realtor and define any finances associated with the sale of the property. The length of the specified contract can be either thirty days, sixty days or ninety days. The number of days do not have to stick to these however, and it is possible to extend the contract with a realtor if you think that they are dedicated and helpful to you and the service you require.
There are several different kinds of contracts available, one of which is the ‘Exclusive Right to Sell’. Such a contract allows your realtor to list and then directly sell your property, it also allows for another realtor to bring a client to your home in order to sell it. Even if you sell your property without any active help from the realtor, if you have contracted them, then they are still owed a commission fee. Similarly, if your agent enlists the help of another agent when trying to sell your house, then the agent must share their commission fee with the third party.
The house will also usually be listed on the Canadian Multiple Listing Service, meaning that both realtors and people looking to buy a house will have access to that information. Agents usually prefer this type of a contract since it provides them with a higher chance of earning a commission fee by selling your home. If you want to sell your property by yourself, then the contract you are looking for is the ‘Exclusive Agency Contract’. Under this contract, a realtor is owed the commission fee if they find someone interested in buying your home. However, if you find buyers by yourself, then the agent is owed no commission fee for the process. The property will still be listed on the MLS. If you want to opt for an Open Listing, then that means that your property can be handled by more than one real estate agency. You may still find a buyer by yourself, in which case you do not have to pay commission fees. But your home will not be on the MLS. There are various ways to sell a property, and these contracts offer just a few of the alternatives available when trying to sell.