One of two common listing contracts in British Columbia, the Multiple Listing Contract(MLC) is used when a seller engages a Realtor to list their property on the Multiple Listing Service (MLS). The MLC outlines the professional relationship between the Seller, the Seller’s Realtor, and the Seller’s Realtor’s Brokerage and also outlines the terms of the listing and agreement.

This video provides a simple explanation of the listing agreement that we use when listing a home in the Cowichan Valley on Vancouver Island. A full-time professional real estate agent will also be able to explain this in more detail. Please feel free to contact Jackie Wood a REALTOR® in the Cowichan Valley and the south Vancouver Island areas.

• Term of Agreement (Section 1)
  • Point out the length of the agreement, as well as connect this with the cancellation/release options that you discuss in Section 14. It is a good practice to have the client’s initial beside the Expiry Date.
• Listing Price (Section 3)
  • Review the Comparative Market Analysis, the client’s motivations for selling and preferred timelines with the client. (Remember, the Comparative Market Analysis should form part of your file).
    
    If the pricing is aggressive or the market is shifting, consider a preliminary discussion of listing price amendments and when those will be considered. Additionally, ensure that you discuss both positive and negative outcomes, as these conversations allow the client to get a sense of what the range of outcomes is likely to be in the local market.
• Cooperating Brokerage (Section 4)
  • Explain that the seller’s commission payable to the listing brokerage is shared between the listing brokerage and cooperating brokerages representing buyers. Importantly, clarify that although the commission is split, the buyer’s Realtor is NOT working for the seller in any way and no confidential information will be shared with Buyer’s REALTORS®.
• When Commission Gets Paid (Section 5A)
  • Explain that commission is payable once the client enters into a legally enforceable or subject-free contract with a buyer. Also, explain that commission can be payable even after termination of the listing contract in the event that a buyer who was introduced to the property during the term of the listing agreement purchases the property within 60 days after termination of the listing contract.
• How Much Commission is Paid (Section 5D)
  • Using the list price, explain the calculation of commission and that GST is payable in addition to this amount.
    
    This is a perfect opportunity to explain and review the Disclosure to Sellers of Expected Remuneration form with the seller.
• Designated Agency (Section 7) and Your Services (Section 9)
  • In addition to your marketing plan, remember to cross-reference the duties in this section which are owed to clients under the Disclosure of Representation in Trading Services form. Explain to your client that your duty is to represent their interests throughout the process. However, a client should understand that you cannot follow any unlawful instructions.
• Seller Agreements (Section 10)
  • Explain that while you, the REALTOR®, are working for the seller, you expect the seller will work with you to assist in the sale and keep you informed of any material changes with the property or their capacity to sell. If the seller is not the title holder, ensure you have a certified, true copy of any power of attorney or the probated will.
• Conflict of Interest (Section 12)
  • Review what an example of a conflict of interest is. For instance, if your buyer client is interested in this listing and how you would practically deal with that conflict, emphasizing communication, transparency and your duties to each party.
    
    This is a great time to review the protocol for conflicts and the Agreement Regarding Conflicts of Interest between Clients.  
• Termination (Section 14)
  • The client needs to understand what happens if they request to terminate the listing contract prior to the expiry date.  Be specific with your own business practices here and write it down clearly. Is the client free to hire another agent immediately? If not, what are the conditions of early termination? Cross-reference this back to the term discussion in Section 1.