In short
It gives the brokerage the right to market and sell your property for that period.
Commission and the length of the agreement are negotiable.
How it works in Ontario
Under the Trust in Real Estate Services Act, 2002 (TRESA), a listing agreement is a type of seller representation agreement. Your contract is with the brokerage, and it may name one or more designated agents who represent you.
It must be in writing, signed by the brokerage and given to you to sign before any buyer makes an offer. You should receive RECO's Information Guide before any services begin.
What to check before you sign
Services: there's no standard package, so photos, MLS® listing, open houses, staging advice and anything else you expect should be written in.
Fees: the amount you pay your brokerage and, separately, any amount you offer toward the buyer's brokerage fees. Fees can be a flat amount, a percentage or both, but can't be based on the difference between list and sale price. The agreement must also say how fees change if multiple representation occurs.
Dates: the expiry date must appear prominently on the first page. Check the termination terms and any holdover clause, which can mean you owe commission if you sell after expiry to a buyer introduced during the listing.
When offers come in
Buyers who make a written offer must be told the number of competing written offers. You decide, in writing, whether any offer details are shared, and information that identifies a buyer is never shared.
If your listing agreement has commission terms that could affect whether an offer is accepted, your brokerage must disclose those terms to anyone who makes a written offer.
Getting on the MLS®
If your home is publicly marketed by a REALTOR®, CREA's Cooperation Policy, in effect since January 3, 2024, requires it to be placed on an MLS® System within three days.
Sellers with privacy concerns can choose an exclusive listing that isn't publicly marketed, but must decline public marketing in writing and acknowledge the downsides. In Ottawa, MLS® listings run through the Ottawa Real Estate Board (OREB).
Common questions about listing agreement
How long is a listing agreement in Ontario?
Whatever you and the brokerage agree to; Ontario has no standard term. Listings commonly run for a few months, but a shorter term is your call. The expiry date must be shown prominently on the first page, and a holdover clause can still apply for a period after it ends.
Is real estate commission negotiable in Ontario?
Yes, commission is set by agreement between you and the brokerage. RECO, the government and real estate boards don't set or approve it. It can be a flat fee, a percentage or both, and the agreement must show separately what you'll pay your brokerage and any amount offered to the buyer's brokerage.
Can I cancel a listing agreement?
It depends on the termination terms in your agreement. RECO says the agreement should list every circumstance in which it can end and any costs. Start by raising concerns with the brokerage's broker of record, and get legal advice if you can't agree.
What is a holdover clause in a listing agreement?
A holdover clause can make you owe commission if you sell after the listing expires to a buyer who was introduced to your home during the listing. It lasts for a set period after expiry. Ontario sets no minimum or standard length, so agree to it before you sign.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.