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Agency Agreement (Real Estate) for Canada

Agency Agreement (Real Estate) Template for Canada

A Canadian Real Estate Agency Agreement is a legally binding contract that establishes the professional relationship between a property owner/seller and a licensed real estate agent or brokerage. This document, governed by provincial real estate laws and regulations, outlines the terms and conditions under which the agent will represent the owner in the sale of their property. It includes specific provisions for commission structures, marketing responsibilities, duration of representation, and various obligations of both parties, while ensuring compliance with provincial real estate boards' requirements and Canadian privacy laws.

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What is a Agency Agreement (Real Estate)?

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.

What sections should be included in a Agency Agreement (Real Estate)?

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.

What sections are optional to include in a Agency Agreement (Real Estate)?

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

What schedules should be included in a Agency Agreement (Real Estate)?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
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

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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