The Real Estate Agency Agreement (Real Estate) is a fundamental document in Canadian real estate transactions, essential for establishing a formal relationship between property owners and real estate professionals. This agreement is particularly important as it defines the scope of the agent's authority, their responsibilities in marketing and selling the property, and the terms of their compensation. It must comply with provincial real estate regulations, which vary across Canadian jurisdictions, and typically includes provisions for listing services, marketing strategies, commission structures, and duration of representation. The agreement serves as a protective mechanism for both parties, ensuring clear understanding of roles, responsibilities, and expectations throughout the property sale process. It's designed to accommodate both residential and commercial property transactions while maintaining compliance with provincial real estate boards' requirements and Canadian consumer protection laws.
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1. Parties: Identification of the Principal (property owner/seller) and the Agent (real estate brokerage/agent)
2. Background: Context of the agreement and brief description of the property and intended service
3. Definitions: Key terms used throughout the agreement including 'Property', 'Listing Period', 'Commission', etc.
4. Appointment and Authority: Formal appointment of the agent and scope of authority granted
5. Term of Agreement: Duration of the agency relationship, including start and end dates
6. Agent's Obligations: Detailed responsibilities of the agent including marketing, showing property, negotiating, etc.
7. Principal's Obligations: Property owner's responsibilities including providing accurate information, access to property, etc.
8. Commission Structure: Detailed breakdown of commission rates, payment terms, and conditions for commission earning
9. Representations and Warranties: Statements of fact by both parties regarding their authority, property condition, etc.
10. Termination: Conditions and process for ending the agreement
11. Dispute Resolution: Process for handling disagreements between parties
12. General Provisions: Standard clauses including governing law, entire agreement, amendments, etc.
1. Multiple Listing Service: Terms for MLS listing, used when the property will be listed on MLS
2. Digital Marketing Services: Specific terms for online marketing, virtual tours, etc., used for enhanced digital presence
3. Property Management: Additional terms for property management services, if agent will manage rentals
4. Team Representation: Used when multiple agents from the same brokerage will be involved
5. International Marketing: Special terms for marketing to international buyers, if applicable
6. Dual Agency: Terms for situations where agent might represent both buyer and seller
7. Privacy Policy: Detailed privacy terms when extensive personal information handling is involved
1. Schedule A - Property Details: Detailed description of the property including legal description, inclusions, exclusions
2. Schedule B - Commission Schedule: Detailed breakdown of commission structures for different scenarios
3. Schedule C - Marketing Plan: Specific marketing activities and timeline
4. Schedule D - Property Disclosure Statement: Seller's disclosures about property condition and history
5. Schedule E - Service Level Agreement: Detailed breakdown of services to be provided by the agent
6. Appendix 1 - Required Provincial Disclosures: Mandatory disclosures required by provincial real estate regulations
7. Appendix 2 - Agency Disclosure: Explanation of different types of agency relationships and obligations
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Property Management
Construction
Professional Services
Legal Services
Financial Services
Insurance
Commercial Property
Residential Property
Relevant Teams
Legal
Compliance
Real Estate Operations
Sales
Business Development
Risk Management
Contract Administration
Property Management
Document Control
Relevant Roles
Real Estate Agent
Real Estate Broker
Property Manager
Legal Counsel
Compliance Officer
Contract Administrator
Real Estate Manager
Business Development Manager
Sales Director
Operations Manager
Risk Manager
Property Developer
Real Estate Consultant
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