The For Sale By Owner Commission Agreement is utilized in the Canadian real estate market when property owners choose to sell their property independently while remaining open to working with real estate professionals who may bring potential buyers. This hybrid approach allows owners to maintain control over their property sale while benefiting from the professional real estate network. The document typically includes detailed commission structures, payment conditions, term of agreement, and specific circumstances under which commission becomes payable. It's particularly relevant in markets where FSBO sales are common but owners want to maintain relationships with the professional real estate community. The agreement must comply with provincial real estate regulations, including the Real Estate and Business Brokers Act (REBBA) where applicable, and federal laws governing real estate transactions in Canada.

1. Parties: Identification of the property owner (seller) and the real estate brokerage/agent, including full legal names, addresses, and contact information

2. Background: Brief context explaining that the owner is selling the property independently and has agreed to pay commission if the broker/agent procures a buyer

3. Definitions: Key terms used in the agreement including 'Property', 'Commission', 'Qualified Buyer', 'Successful Sale', etc.

4. Property Details: Full legal description of the property, including address, legal description, and any included/excluded items

5. Commission Structure: Detailed explanation of the commission rate, calculation method, and payment terms

6. Payment Conditions: Specific conditions that trigger the obligation to pay commission, including successful sale requirements

7. Term of Agreement: Duration of the agreement, including start and end dates

8. Broker's Rights and Obligations: Outline of what the broker/agent can and cannot do, including showing the property and negotiating with potential buyers

9. Owner's Rights and Obligations: Owner's responsibilities, including providing access to the property and necessary information

10. Termination: Conditions under which either party can terminate the agreement and any resulting obligations

11. Dispute Resolution: Process for resolving any disagreements between the parties

12. Governing Law: Specification that the agreement is governed by Canadian law and the applicable province

13. Entire Agreement: Statement that this document represents the complete agreement between the parties

14. Execution: Signature blocks for all parties and date of signing