If you’re thinking about selling your home, one of the first questions that might come to mind is: Do I Need to Sign a Listing Agreement in Ontario? The short answer is yes but more importantly, understanding why you need to sign it can help set the tone for a smooth, transparent and successful home sale.
Here’s what every seller should know before putting their home on the market.
What Is a Listing Agreement?
A listing agreement is a legally binding contract between a property owner and a real estate brokerage. It outlines the terms under which your property will be marketed and sold.
This isn’t just a formality. It’s a foundational document that protects both you and your Realtor by clearly laying out responsibilities, expectations and terms of service.
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Why It’s Required in Ontario
In Ontario, you cannot legally advertise or show a property for sale without a signed listing agreement. The Real Estate Council of Ontario (RECO) requires brokerages to have a written agreement in place before any marketing activities can begin.
No signature means no signage, no MLS exposure, no open houses and no professional photos or staging. Essentially, your sale can’t move forward.
What’s Included in a Listing Agreement?
Your listing agreement will typically cover the following:
- Listing Price: The price you and your Realtor agree to list the property for.
- Commission: The compensation the brokerage and cooperating brokerage will receive upon a successful sale.
- Duration: The start and end dates of the contract.
- Marketing Strategy: How your property will be promoted (MLS, exclusive listings, digital marketing, etc.).
- Access & Showings: Guidelines for when and how buyers can view your property.
- Legal Clauses: Terms around cancellations, early termination and your rights as a seller.
A great agent will take the time to walk you through each section, answer questions and tailor the terms to your comfort level.
Different Types of Listing Agreements
In Ontario, there are two primary types of listing agreements:
- Exclusive Listing
This means only your brokerage has the right to sell your home. It won’t appear on the MLS system but your agent can still market it to their network and contacts. This is often used for more private sales. - MLS® Listing (Multiple Listing Service)
The most common type. Your home is listed publicly on the MLS, increasing its exposure to thousands of agents and potential buyers.
Your agent will help you decide which type of agreement is best for your goals and the current market conditions.
Can You Negotiate a Listing Agreement?
Absolutely. Many sellers don’t realize that this agreement is not a take it or leave it deal. You can:
- Set a shorter or longer duration
- Include specific marketing terms
- Add or exclude conditions
- Discuss cancellation clauses
A good Realtor won’t pressure you, they’ll collaborate with you to find an outcome that works for both parties.
What Happens If You Don’t Sign?
Simply put: without a listing agreement your Realtor has no legal authority to market your home or represent your interests in the sale.
That means:
- No MLS listing
- No public or private showings
- No professional marketing
- No ability to negotiate offers on your behalf
It’s not just about paperwork, it’s about protecting you and ensuring your home is given the full professional treatment it deserves.
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Bottom Line
Signing a listing agreement in Ontario isn’t just a box to check, it’s a crucial first step in selling your home. It sets clear expectations, protects both parties and allows your Realtor to market your property with confidence and integrity.
If you’re unsure about the terms or just want someone to walk you through it, don’t hesitate to ask questions. Selling your home starts with good information and signing a listing agreement with a trusted, knowledgeable Realtor is the first smart move.
Have questions about selling your home in Ottawa or across Ontario? Reach out to our team anytime, we’re here to help! Call 613.909.8100 or reach us by email at info@PilonGroup.com.
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