Posted by: Nick Fundytus
Posted: September 20th, 2023
Question of the week:
Is it necessary to sign an OREA form 200 to list a home in Ontario?
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Hi, we are selling our detached home in Mississauga.
Our realtor is making us sign an OREA 200 form to sell our home and it will be for 3.5 months (until Dec 31). Is this a standard time frame and is it necessary?
Also, he put down a holdover period of ninety days – meaning that 90 days after the contract expires if one of his buyers comes and says they want the house it’s his client.
Thanks for the advice/insight!
Nick's Answer:
In short, yes you will need to sign Form 200 in order to list your residential home in Ontario with a Realtor on the MLS, which is generally accompanied by form 960/160A (Information sheet about your home). Your Realtor’s Brokerage almost certainly requires this paperwork for their files.
If you’d like an in-depth explanation of that form, I’ve created a video for you; just fast-forward to the paragraphs that you have questions about.
A little more detail and context that may be useful for you:
Although it may be technically legal to represent a Seller in the listing and sale of their house without appropriate Ontario, I’m not aware of any agents that would do that. It’s too risky from a liability point of view not to have documentation if something goes sideways, and frankly most decent agents are not going to trust a client who insists on doing things off the books.
3.5 months would actually be a relatively short listing here in Ottawa, though the norm may be different in your market. Listing agreements with my team are written as six months less a day for almost all of our clients. We spend quite a bit of money on the preparation and marketing of the listing and want the trust and commitment from our clients that we have the runway needed to sell it if the market isn’t responding as expected.
The purpose of a holdover is not that Buyers are the Realtor’s client after the expiration/cancellation of the listing. What it actually means is that the listing agent (technically, his brokerage) is entitled to compensation if a buyer who was introduced to the listing during the original listing (via the MLS or marketing) makes an accepted offer within 90 days of the end of the original listing. There are exceptions to this if you’ve signed with a new Realtor at that point. You might only pay the difference in commission between the first and second Realtor, or no commission depending upon how it’s worded. However, it doesn’t mean that anyone who offers on your home within 90 days from the end of the listing is automatically the Realtor’s client. There’s no fixed amount of time for the holdover clause but we list our clients with that same number and explain to our Seller clients what it means and how it affects them.
Good luck on the listing, and shoot me a message if you have any other questions.
Source: I’m a Realtor in Ottawa, Ontario.
Bonus Tips!
1
I’ve created this YouTube Playlist explaining each major form in the purchase and sale process in Ontario. It’s a good place to review what your obligations and rights are with each form.
2
Your Lawyer is great for independent advice. If you’re unsure whether you’re getting unbiased advice from your Realtor, ask your lawyer for a second opinion for peace of mind.
3
Many terms in listing forms are negotiable. Discuss with your Realtor until you’ve got an agreement that works for both of you.
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