Real Estate Agent Contract for Canada

Real Estate Agent Contract Template for Canada

A comprehensive legal agreement governed by Canadian federal and provincial laws that establishes the professional relationship between a real estate agent/brokerage and their client. The document outlines the terms of service, commission structure, responsibilities, and obligations of all parties involved in real estate transactions. It incorporates provincial-specific requirements, such as those outlined in the Real Estate and Business Brokers Act (REBBA) in Ontario or equivalent legislation in other provinces, while ensuring compliance with federal regulations regarding privacy, anti-money laundering, and competition laws.

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What is a Real Estate Agent Contract?

The Real Estate Agent Contract serves as a fundamental legal document in Canadian real estate transactions, establishing the formal relationship between real estate professionals and their clients. This contract is essential for any real estate agent or brokerage operating in Canada, as it defines the scope of services, commission structures, and mutual obligations while ensuring compliance with provincial real estate regulations and federal laws. The document is typically used when engaging a real estate professional for property sales, purchases, or leasing services, and must be customized to reflect specific provincial requirements while maintaining consistency with federal regulations. The contract includes crucial elements such as service terms, commission structures, marketing commitments, and privacy considerations, making it an indispensable tool for protecting both the agent's and client's interests in real estate transactions.

What sections should be included in a Real Estate Agent Contract?

1. Parties: Identifies the real estate brokerage, individual agent, and client (seller/buyer) with full legal names and contact details

2. Background: Establishes the context of the agreement, including the client's intention to sell/buy property and the agent's qualifications and licenses

3. Definitions: Defines key terms used throughout the agreement including 'Property', 'Commission', 'Listing Period', 'Closing Date', etc.

4. Appointment and Authority: Formally establishes the agency relationship and scope of agent's authority to act on behalf of the client

5. Term of Agreement: Specifies the duration of the agreement, including start and end dates, and any renewal provisions

6. Agent's Services and Obligations: Details the specific services the agent will provide and their professional obligations

7. Client's Obligations: Outlines the client's responsibilities, including providing accurate information and reasonable cooperation

8. Commission Structure: Details the commission rate, calculation method, and payment terms

9. Termination: Specifies conditions and process for ending the agreement, including any holdover periods

10. Confidentiality: Addresses handling of confidential information and privacy requirements

11. Representation and Warranties: Contains standard representations from both parties regarding authority and capacity

12. Dispute Resolution: Outlines process for handling disagreements and specifies jurisdiction

13. General Provisions: Contains standard clauses including entire agreement, amendments, and governing law

What sections are optional to include in a Real Estate Agent Contract?

1. Multiple Listing Service: Include when the property will be listed on MLS, specifying requirements and procedures

2. Team Representation: Include when multiple agents from the same brokerage may be involved in representing the client

3. Property Management: Include for agreements involving property management services in addition to sales

4. Digital Marketing Authorization: Include specific provisions for online marketing and social media promotion

5. International Marketing: Include when property will be marketed to international buyers

6. Dual Agency: Include when the brokerage may represent both buyer and seller

7. Environmental Matters: Include for properties with known or potential environmental concerns

8. Assignment: Include when transfer of rights under the agreement may be permitted

What schedules should be included in a Real Estate Agent Contract?

1. Schedule A - Property Details: Detailed description of the property including legal description, fixtures, and inclusions/exclusions

2. Schedule B - Commission Schedule: Detailed breakdown of commission structures for different transaction scenarios

3. Schedule C - Marketing Plan: Specific marketing activities and timeline proposed by the agent

4. Schedule D - Service Level Agreement: Detailed breakdown of specific services and response times

5. Appendix 1 - Required Disclosures: Mandatory disclosures required by provincial real estate regulations

6. Appendix 2 - Agency Disclosure: Detailed explanation of agency relationships and obligations

7. Appendix 3 - Privacy Policy: Detailed privacy policy and information handling procedures

8. Appendix 4 - Professional Credentials: Copies of agent's licenses, certifications, and professional memberships

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 | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Property Management

Commercial Property

Residential Property

Legal Services

Financial Services

Property Investment

Construction

Urban Development

Relevant Teams

Legal

Compliance

Real Estate Sales

Contract Administration

Business Development

Property Management

Transaction Processing

Marketing

Commercial Real Estate

Residential Real Estate

Relevant Roles

Real Estate Agent

Real Estate Broker

Property Manager

Real Estate Sales Representative

Brokerage Manager

Real Estate Compliance Officer

Legal Counsel

Contract Administrator

Real Estate Transaction Coordinator

Business Development Manager

Real Estate Marketing Manager

Commercial Real Estate Agent

Residential Real Estate Agent

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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