What “exclusive” means
An exclusive listing appoints one brokerage as your only agent for a fixed term. If the property sells during the term, by anyone, including you, to a neighbour, that brokerage is owed commission. Most exclusives also include a holdover period after expiry during which a sale to anyone introduced during the term still earns commission.
What the agent must explain
Section 5 of the old Code required conscientious, competent service; section 4 required acting in your best interests. In the Mustafa Zia decision the sellers signed a five-month exclusive on the evening of 12 March 2017, at $1,200,000 on his recommendation, and RECO found he “did not adequately explain to the Sellers the meaning and impact of entering into an exclusive listing agreement”. That alone was a breach of sections 4, 5 and 38, before any offer had been made.
Questions to ask before signing
- How long is the term, and why that long? Ninety days is common for a resale house; five months for a long-vacant property may or may not be justified.
- What is the holdover period and what triggers it?
- What is the commission, and is it payable if I find the buyer myself?
- How did you arrive at the list price? Show me the comparable sales.
- Can I cancel early, and what does it cost?
- Will you present offers from buyers you or your brokerage also represent? What happens then?
Never sign the same evening
There is no listing that cannot wait twenty-four hours. Take the agreement home, read the schedule, and if anything is unclear ask a lawyer. An agent who resists that pause is telling you something.