Working with a Real Estate Agent brochure
It is mandated in law that both buyers and sellers are given the working with a real estate agent brochure that spells out the relationship with the realtor or agency. You will sign on the brochure to acknowledge having the discussion with the agent. The signed disclosure statement can be torn off and safely kept.
The signed statement doesn’t place you under any obligation to the realtor. It is only a confirmation that you discussed the representation options with your agent.
MLS Listing Contract
Sellers sign a Multiple Listing Service (MLS) Listing Contract with their realtor outlining the terms of their listing. The contract will include the length of time for the listing, all the parties to the listing, the price, the commission to be paid, the address and the legal description of the property to be sold, how the seller is to be paid, the financial obligations, the preferred possession date, and other information regarding the property.
The contract is between the seller and the listing agency and not the salesperson. If the salesperson leaves the company, the seller and listing company make the decision to carry on with the listing or get it assigned to another salesperson.
Data Input Form
The Data Input Form is filled out by the realtor and will provide information required to list your property. The information includes the lot size, number and size of rooms, construction type, style of the house and more. The information is entered into the MLS database for matching the house with buyers.
Exclusive Listing Contract
The Exclusive Listing Contract is used to limit listing the property to only one Multiple Listing Service. The exclusive listing is only publicized by way of advertising and not through the catalog/computer.
Sellers are mistaken when they think that an exclusive listing will get more buyers and fewer “lookers.” In reality, Realtors working with buyers start by searching the MLS catalog/computer and overlooking the exclusive listing. Simply put, the greater the number of people who know about a property the greater the chance of landing many serious buyers who meet your terms and asking price.
The listing amendment form helps to make changes to the original MLS or Exclusive Listing Contract. The changes may include changing the price, extending the listing date, altering the wording on the print- out, correcting measurements, and correcting tax or financial information. The form is to be signed by both the seller and manager of the listing agency.
The Listing Cancellation Form is filled out by the seller and the realtor to cancel a listing. The form carries a preprinted clause that states that if the property sells within 60 days of cancellation, or before the natural expiry of the listing (whichever comes first), the seller is liable for a commission. It makes sure that the realtor is compensated for the advertising dollars and hours spent showing a home prior to a listing cancellation.
The seller should talk to the manager of the listing agency about their concerns if they think they are dissatisfied with the service of a realtor. The listing agency will work to achieve satisfactory results.
Hold Action Form
Your realtor will help you fill out a Hold Action Form to temporarily stop marketing a home. The form is used to instruct other realtors who have access to your listing via the MLS system that you wish to delay the sale of your home.
Property Disclosure Statement (PDS)
The seller is legally bound to provide accurate information concerning the property put on sale. The information will include knowledge about the property, any upcoming expenses, defects that the owner is aware of and other assessments in strata-titles properties.
All this information is filled out by the seller on the Property Disclosure Statement form. All answers should be complete and correct to avoid liability on the seller. The buyer must make other inquiries to ensure that every aspect of the property is covered. The realtor is prohibited from filling out the PDS on behalf of the seller.
Limited Dual Agency Agreement
The limited dual agency agreement is completed where the agent represents both the buyer and the seller in a single transaction. The agreement will provide authorization to the agent to present the two parties in a limited capacity, while maintaining the confidences of the parties with regard to negotiating positions and personal information. The form is particularly used where two salespersons from the same company are handling a transaction.
Contract of Purchase and Sale
It is the standard contract that is signed by the sellers and the buyers. The contract of purchase and sale outlines all aspects of the transaction such as price, handling of existing tenants, terms and conditions, dates, the deposit and increases, inclusions and exclusions, and other legal matters such as matters added to the preprinted contract and added clauses.
A special preprinted addendum is added to the basic sales contract if there is financing to be cleared from the title before the seller is able to provide clear title or where financing is required after the title is registered in the buyer’s name.
Addendum (without printed clause)
The basic blank addendum is used to include additional clauses to the contract where there is insufficient space on the contract. The buyer signs the form to indicate removal of the clause.
Amendment to Contract of Purchase and Sale
The document serves to remove conditions (subject removal) when they have been satisfied such as where the buyer must find financing by a specific date.
The lease is commonly used in commercial transactions as opposed to residential transactions. Some tenants and landlords will prefer to use the lease to guarantee the stability of tenure.
The commercial lease is a complex document that must be drawn by experts in the field and should be reviewed by lawyers of each party.
The residential lease is not entirely complex since it is simply an outline of rules and regulations in the building, the expectations of the owner and the tenant not captured in the Residential Tenancy Act.
Consult a Fort McMurray Realtor or lawyer if you encounter challenges in drawing up and in the interpretation of specific clauses.
Mortgages come in different formats depending on the lending institution. A simplified form is used whereas the larger form is used where deviations occur. Buyers are advised to check if document reflects the contents or terms agreed to when signing the commitment letter. Check and confirm the interest rate, the amortization period, the assumability of the mortgage if the property is sold, the prepayment privilege, the options (if any) for increasing the number of payments or making lump sum payments, and the portability of the mortgage if the seller wishes to use it on another property.
If you are a seller who is carrying financing for a buyer of your property, ensure that your lawyer reviews the documents before signing them. If you are a buyer who is asking a seller to carry financing, ensure that your own lawyer reviews the documents as well. It will help to avoid serious issues that may arise where the parties are unfamiliar with mortgage financing laws.
If you have any question regarding selling your Fort McMurray home, then consult with our experienced team of realtors at The Lore Group.