Before a real estate agent can begin working on the sale of your house, you must sign a brokerage agreement, which formalizes your relationship with your broker for a set amount of time. Before you sign a contract with your realtor, these are the most important things to think about so you can make an informed decision.

  • Non-Exclusive vs. Exclusive Brokerage Contracts 

You’ll have to choose between signing an exclusive or non-exclusive brokerage contract when you list your home for sale in Ottawa with your real estate broker. By signing an exclusive brokerage agreement, you grant your broker the authority to serve as your sole mediator in the sale of your property. The best strategy to ensure maximal effort from the broker is to sign an exclusive brokerage contract, in which he is guaranteed a commission if he finds you a buyer.

With a non-exclusive brokerage arrangement, you have the flexibility to sell your house through another broker or on your own if you find a buyer. Your real estate broker will not be paid a salary if you complete the deal with this type of contract in place.

  • There Are Two Types Of Brokerage Agreements: “Revocable” And “Irrevocable.”

Any reference to “revocable” or “irrevocable” should raise a red flag because it indicates whether or not your brokerage contract can be terminated before its expiration date. There is a clause in the contract that can be rescinded if you change your mind. If your broker isn’t doing enough to help you sell your home, you have the option of terminating the arrangement. Any advertising expenditures incurred may be levied against the homeowner, though.

  • The Broker’s Fee Can Always Be Negotiated

Negotiation is the name of the game when it comes to Ottawa real estate. However, prior to signing the brokerage contract, you should consider engaging in some form of negotiation. Broker commissions for real estate transactions typically range from 4% to 7%. In order to successfully negotiate your agent’s price, you will need to make strong arguments, as he or she is a skilled communicator as well as a skilled negotiator. You’ll get a smaller commission if you have a lot of evidence to back up your case for a rapid sale.

  • Brokerage Contracts Have a Dreaded “Three-Day Cancellation Period.”

Brokerage contracts may be signed by sellers before they withdraw from them. Within three days of receiving a copy of the document signed by both parties, the Real Estate Brokerage Act permits him to terminate his contract. It is often known as the “right of withdrawal.”

  • The Length of a Brokerage Agreement Can Be Specified

A brokerage agreement is typically for a period of six months. However, if you discover a lazy broker, this period might be extremely extensive, especially if you need to sell immediately. Notably, you have the choice to sign a brokerage agreement for a shorter duration. You should have no issue finding a broker who is competent and has a track record of selling properties promptly.