The Alberta Real Estate Listing Agreement: What You Need to Know
When it comes to buying or selling a property in Alberta, understanding the real estate listing agreement is crucial. This legal document outlines the terms and conditions of the relationship between the seller and the real estate agent, and provides important information about the property being sold.
Here`s everything you need to know about the Alberta Real Estate Listing Agreement:
What is a Listing Agreement?
A Listing Agreement is a legal contract between the seller(s) of a property and a registered real estate agent or brokerage. It outlines the services that the agent will provide, the length of time the agreement is valid for, the commission the agent will receive, and other important terms and conditions.
The Listing Agreement is typically signed before the agent begins marketing the property for sale. This allows the agent to take photos of the property, create a listing on the MLS (Multiple Listing Service), and begin promoting the property to potential buyers.
What`s Included in the Alberta Real Estate Listing Agreement?
The Alberta Real Estate Association (AREA) provides a standard form Listing Agreement that is commonly used by real estate agents in the province. This form includes several key sections:
1. Identification: This section includes basic information about the property being sold, such as the legal description, the municipal address, and the type of property (e.g. single-family home, condominium).
2. Agent`s Duties: This section outlines the services that the agent will provide to the seller, such as marketing the property, arranging showings, and negotiating offers.
3. Term: This section specifies the length of time that the Listing Agreement is valid for. The standard term is typically 90 days, but this can be negotiated between the seller and the agent.
4. Commission: This section outlines the commission that the agent will receive if they sell the property. The standard commission rate in Alberta is typically 7% on the first $100,000 of the sale price, and 3% on the balance.
5. Property Disclosure: This section provides the seller with an opportunity to disclose any known defects or issues with the property. This is important because it helps to protect the seller from legal liability if these issues are discovered after the sale.
6. Additional Terms and Conditions: This section allows for any additional terms or conditions to be added to the agreement, such as the inclusion of furniture or appliances in the sale.
What Should You Consider Before Signing a Listing Agreement?
Before signing a Listing Agreement, it`s important to consider several factors:
1. Agent`s Qualifications and Experience: You want to ensure that you are working with a qualified and experienced agent who has a proven track record of success in selling properties in your area.
2. Commission Structure: While the standard commission rate in Alberta is 7% on the first $100,000 of the sale price, and 3% on the balance, this is negotiable. Some agents may be willing to work for a lower commission rate.
3. Length of Term: While the standard term for a Listing Agreement is 90 days, this can be negotiated. You want to ensure that the length of the term is appropriate for your needs and the current market conditions in your area.
4. Property Condition: It`s important to ensure that your property is in good condition before listing it for sale. This includes making any necessary repairs and ensuring that it is clean and well-maintained.
In conclusion, the Alberta Real Estate Listing Agreement is an important document that outlines the terms and conditions of the relationship between the seller and the real estate agent. By understanding the key sections and considering important factors before signing the agreement, you can ensure a smooth and successful sale of your property.