What Is a Listing Agreement in Ontario?

Before a home can be listed for sale in Ontario, the seller and their real estate representative sign a formal contract called a listing agreement. This document defines the terms of the working relationship and authorizes the brokerage to market the property on the seller’s behalf.
Understanding what you are signing before you sign it is one of the most important steps in the selling process.
What a Listing Agreement Covers
A listing agreement typically includes the following key terms:
Listing Price: The price at which the property will be offered for sale.
Commission: The total commission to be paid to the brokerage upon a successful sale, and how it will be shared with a cooperating buyer’s brokerage.
Listing Period: The start and end date of the agreement. In Ontario, most listing agreements run for 60 to 90 days, though this is negotiable.
Holdover Clause: A clause that entitles the listing brokerage to commission if the property sells to a buyer who was introduced to it during the listing period, even after the agreement expires. The holdover period is typically 60 to 90 days.
Seller’s Representations: Statements the seller makes about the property, including disclosure of known defects.
Types of Listing Agreements
The most common type in Ontario is the Multiple Listing Service (MLS) Agreement, which authorizes the brokerage to list the property on the MLS system, giving it broad exposure to buyers and cooperating agents.
A Exclusive Listing Agreement restricts marketing to the listing brokerage only and does not appear on MLS. These are less common and typically used in specific circumstances where the seller prefers limited exposure.
What Sellers Should Review Before Signing
Before signing any listing agreement, sellers should clarify:
The exact commission structure and what services are included
The length of the listing period and the holdover clause duration
The process for cancelling the agreement if circumstances change
Any marketing commitments the brokerage is making in writing
A listing agreement is a legally binding contract. Taking the time to read it carefully and ask questions before signing protects your interests throughout the selling process.