A listing agreement is the written contract you sign with a brokerage that gives it the authority to market and sell your home, and it sets out the commission, the asking price, how long the listing runs, and what the agent can do on your behalf. In Ontario most agents use OREA Form 200, now titled the Listing Agreement, Seller Representation Agreement and Authority to Offer for Sale.
Signing it makes you a client of the brokerage rather than someone the agent is helping informally. That distinction carries legal weight under the Trust in Real Estate Services Act, known as TRESA, the law that replaced REBBA in December 2023 and is enforced by the Real Estate Council of Ontario. Once a brokerage provides a service, TRESA requires a representation agreement to be in place. On the selling side, the listing agreement is that document.
Commission is the part most sellers focus on, and it is fully negotiable. Ontario has no fixed rate. The figure you agree to is usually written as a percentage of the eventual sale price, and a share of it is offered to the brokerage that brings the buyer. HST applies on top. Before you sign anything, it is worth understanding how real estate agents get paid in Ontario so the split is clear.
The agreement also runs for a fixed term. You and the brokerage choose an expiry date, and the listing ends on its own when that date arrives. Pay attention to the holdover clause. For a set number of days after the listing expires, you can still owe commission if you sell to a buyer who was introduced to the property during the listing period. The asking price written into the agreement is something you set together, often after looking at a comparative market analysis of recent sales near you.
Think of a listing agreement as the seller's counterpart to the buyer representation agreement on the purchasing side. Read it closely, ask about the term and the holdover, and confirm that the commission and the listed services match what you discussed.
Related reading: What Is a Buyer Representation Agreement in Ontario?, How Do Real Estate Agents Get Paid in Ontario?, and What Is a Comparative Market Analysis?
