Exclusive Seller Brokerage Engagement Agreement for Canada

Exclusive Seller Brokerage Engagement Agreement Template for Canada

A comprehensive legal agreement used in Canadian real estate transactions that establishes an exclusive relationship between a property seller and a real estate brokerage firm. This document, governed by provincial real estate laws and regulations, outlines the terms under which the brokerage will have the exclusive right to market and sell the property. It includes detailed provisions for commission structures, marketing responsibilities, property representation terms, and the duration of the exclusive relationship. The agreement ensures compliance with provincial real estate regulations while protecting both the seller's and brokerage's interests throughout the sales process.

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What is a Exclusive Seller Brokerage Engagement Agreement?

The Exclusive Seller Brokerage Engagement Agreement is a fundamental document in Canadian real estate transactions, used when a property owner wishes to engage a real estate brokerage firm as their sole representative in selling their property. This legally binding agreement grants the brokerage exclusive rights to market and sell the property for a specified period, typically ranging from three to six months. The document comprehensively outlines the responsibilities of both parties, commission structures, marketing strategies, and terms of engagement. It ensures compliance with provincial real estate regulations and professional standards while providing clear guidelines for the working relationship. This agreement is particularly important as it protects both the brokerage's investment in marketing the property and the seller's interests in achieving the best possible sale outcome. The document is designed to meet the requirements of provincial real estate councils and relevant consumer protection legislation, making it a crucial tool in professional real estate practice across Canada.

What sections should be included in a Exclusive Seller Brokerage Engagement Agreement?

1. Parties: Identifies the seller(s) and the brokerage firm, including full legal names, addresses, and licensing information

2. Background: Establishes the context of the agreement, including the seller's intention to sell the property and the brokerage's qualifications

3. Definitions: Defines key terms used throughout the agreement, including 'Property', 'Listing Period', 'Asking Price', and 'Commission'

4. Property Description: Detailed description of the property being sold, including legal description and current title information

5. Term of Agreement: Specifies the duration of the exclusive relationship, including start and end dates

6. Listing Price: States the agreed-upon listing price and terms for price modifications

7. Brokerage Services: Comprehensive list of services the brokerage will provide, including marketing, showings, and negotiation

8. Commission Structure: Details of the commission rate, payment terms, and conditions for commission earning

9. Seller's Obligations: Outlines the seller's responsibilities, including property access, information disclosure, and cooperation

10. Brokerage's Obligations: Specifies the brokerage's duties, professional standards, and fiduciary responsibilities

11. Marketing Authorization: Permissions for advertising, photography, signage, and digital marketing

12. Representation and Warranties: Seller's assertions about property ownership and condition

13. Termination: Conditions and process for ending the agreement, including any holdover periods

14. Dispute Resolution: Process for handling disagreements, including mediation and arbitration procedures

15. Governing Law: Specifies applicable provincial law and jurisdiction

16. Signatures: Execution block for all parties, including dates and witness provisions

What sections are optional to include in a Exclusive Seller Brokerage Engagement Agreement?

1. Multiple Listing Service Authorization: Authorization for MLS listing when seller opts for MLS services

2. Virtual Tour and Digital Marketing: Specific provisions for digital marketing strategies when advanced online promotion is desired

3. Property Management: Required when property needs management during the listing period

4. International Marketing: Additional provisions for marketing to international buyers when applicable

5. Tenancy Provisions: Required when the property is currently tenanted

6. Dual Agency Consent: Used when brokerage may represent both seller and potential buyers

7. Privacy Policy: Detailed privacy provisions when collecting sensitive personal or financial information

8. Green Building Features: Special marketing provisions for properties with environmental certifications

What schedules should be included in a Exclusive Seller Brokerage Engagement Agreement?

1. Schedule A - Property Details: Comprehensive property information, including fixtures, chattels, and exclusions

2. Schedule B - Marketing Plan: Detailed marketing strategy and timeline

3. Schedule C - Commission Schedule: Detailed breakdown of commission structures and payment scenarios

4. Schedule D - Property Disclosure Statement: Seller's disclosure of property condition and known issues

5. Schedule E - Service Level Agreement: Detailed breakdown of specific services provided by the brokerage

6. Appendix 1 - Required Property Documents: List of documents the seller must provide

7. Appendix 2 - Photography and Virtual Tour Authorization: Specific permissions for property photography and virtual tours

8. Appendix 3 - Market Analysis: Comparative market analysis and pricing strategy

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use

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