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Brokerage contracts to sell – Seller’s representation

Context of use of the form

In the sale of a chiefly residential immovable containing less than five dwellings, the brokerage contract to sell is the vehicle by which the seller gives a broker the right to act as intermediary in order to assist him. Once the contract is drawn up by the broker, with the seller’s collaboration, and signed by both parties, the broker will market the property with the goal of carrying out a transaction at the best conditions possible.

One of two forms must be used for the sale of a chiefly residential immovable containing less than five dwellings: the Exclusive brokerage contract – Sale (EBCS) or the Non-exclusive brokerage contract – Sale (NEBCS). If the contract is exclusive, no other real estate broker has the right to solicit the seller directly and enter into another contract with him, regardless of the type of contract (EBCS or NEBCS, or even a brokerage contract to lease). If the contract is non-exclusive, the seller puts his property on the market with the help of a broker, but without the broker’s services being exclusive. As soon as the seller enters into a non-exclusive brokerage contract to sell, he must notify in writing any other broker with whom he has already entered into such a contract and make sure everyone is provided with all the information and documents that support the declarations made in the form Declarations by the seller of the immovable – Chiefly residential immovable containing less than 5 dwellings excluding divided co-ownership (DS) and any amendments thereto. This requirement stems from the obligation to ensure the accuracy of the information provided by the seller.

The broker identified in clause 1. Identification of the parties must read to the seller the text that appears at the top of the Exclusive brokerage contract – Sale and the Non-exclusive brokerage contract – Sale. Although brokers and agencies are not obligated to include the Non-exclusive brokerage contract – Sale in their business model, they must mention its existence to the consumer.

The form Exclusive brokerage contract – Sale contains boxes for sellers to initial to indicate that they have been informed by the agency or the broker identified in clause 1 of their right to enter into a non-exclusive brokerage contract and having decided to enter into an exclusive brokerage contract instead.

In the form Non-exclusive brokerage contract – Sale, by initialing the box, the seller acknowledges having been informed by the agency or the broker identified in clause 1 of his right to enter into an exclusive brokerage contract and having decided to enter into a non-exclusive contract instead.

Last updated on: May 18, 2023
Reference number: 264954