Paperwork For Selling A House Without A Realtor® in Canada

If a move is on your agenda, you may find yourself wondering, “Do I need a Realtor® to sell my house?” Technically speaking, the answer is no. You are perfectly entitled to sell your home FSBO (For Sale By Owner) if you choose.

Perhaps what you should be asking is, “Do real estate agents work 9-5?” It’s a fair question, given that there are plenty of agents who work part-time while juggling a separate career.

However, successful agents are highly dedicated and often work long before and after normal office hours. The reason is that selling a house is far more complicated and involved than many people realize. We must be available at all hours of the day during the listing period to support our clients and get the best possible results.

If you still plan to sell your house yourself, understanding all the paperwork involved is critical. In this post, we’ll give you a few tricks of the trade and answer some of the most common questions we get about whether and how to sell a house privately.

Whether you sell your home with a Realtor® or on your own, our detailed Seller’s Guide is a tool you will want to keep handy. Download your copy right here.

Understanding Real Estate Contracts

The first thing to understand when selling a house without a Realtor® is that there is a mountain of paperwork involved, and each document is legally binding. It is critical that you don’t just sign an agreement after skimming it briefly. There’s a lot more at stake than agreeing to use a website!

You will want to read – and understand – all terms and conditions and know what they mean for you and the buyer. With that in mind, here are some of the forms and contracts that you will encounter.

A background understanding of the real estate market is invaluable, especially if selling a house FSBO. Here’s What These Numbers Mean in Real Estate.

Agreement of Purchase and Sale (APS)

This is by far the most critical document in real estate. This is true if you decide to sell your home with a real estate agent, and especially if you don’t. This contract is between you and the buyer.

It begins as a simple offer that the buyer extends. If you accept and sign, it becomes a legal Agreement of Purchase and Sale, and both you and the buyer are compelled to abide by all clauses and terms.

Elements of an APS include the purchase price, the amount of the deposit, the closing date, whether or not there are conditions, any inclusions or exclusions, as well as the possession date.

The standard document is OREA (Ontario Real Estate Association) Form 100. You might find versions that you can download online; however, this can be incredibly risky from a legal standpoint. If selling without a real estate agent, your best bet is to obtain the correct form from a lawyer.

Do you want more tips on how to get the best results from your home sale? You’ll find plenty in the posts below:

A Property Disclosure Statement (PDS)

A PDS, also called a Seller Property Information Statement (SPIS), isn’t always mandatory before selling your home. Nevertheless, you must legally disclose any known latent defects with the property. A latent defect is a flaw that a potential buyer or their agent cannot visibly observe. A broken window is considered a “patent” defect, which you have no obligation to disclose because it should be obvious.

Latent defects could include structural problems, water damage, or plumbing or electrical issues. You only need to reveal them if you know about them at the time of the sale or discover them between the offer and the closing date.

Providing a PDS can protect you as it shows you listed and sold the home in good faith. However, it is critical not to lie or to mislead a potential buyer in any way. Otherwise, you can open yourself up to legal action later.

Real Property Report RPR

Also called a Surveyor’s Real Property Report (SRPR), an RPR is also not legally required, but it can be a valuable sales tool. A land surveyor prepares the document to clearly show the boundaries of your property and the exact location of your home, shed, garage, or any other structures on the land. It can reassure a nervous buyer that there will be no boundary disputes or other encroachments after they take ownership.

Listing Agreement

If you decide to retain a real estate agent rather than sell your home FSBO, you will need to sign a Listing Agreement. This document gives your agent permission to market and sell your property. Under the guidelines of the Trust in Real Estate Services Act, it also means your agent and their brokerage have a fiduciary duty to represent your best interests.

Once again, a Listing Agreement is a legal document, so you will want to make sure you understand it before signing. Some terms and conditions will vary, but all contracts will outline the property description, listing price, commencement and expiry date, and the commission amount.

The debate between selling with a real estate agent and FSBO continues. Learn more in the posts below:

The Value of Representation

As with anything, there are some pros and cons of selling a house without a Realtor®. The main benefit people are looking for is to avoid paying real estate commissions.

On paper, it seems that you can save a significant sum by finding a buyer on your own. However, it’s not always as easy as it seems, especially during a challenging market. Even when demand is high, there are benefits to working with a skilled real estate expert.

Obtaining the highest price is the result of knowledge, training, and the instinct that comes from years of experience in the industry. You have to know how to present your home in a way that generates maximum appeal as well as how to set the price just right.

If you underprice your home, you will almost certainly earn less than you deserve. That much makes sense. It may seem counterintuitive, but you will also likely earn less than your home is worth if you set the price too high – if you manage to sell at all.

Working with a real estate agent usually means earning more from your sale even after accounting for commissions. But for most home sellers, the peace of mind that comes with expert guidance is the most valuable benefit of all.

Do you have questions about how to list your home in today’s market? Our Peterborough real estate agents are committed to helping you get results. Reach out to team@jeffandkatie.ca or call 705-243-9797 to start the conversation today.