Cancellation of Listing Agreement Form PDF Details

When the time comes for a seller and a brokerage to part ways before the sale of a property is finalized, the Form 242 Cancellation of Listing Agreement steps in as a crucial document, ensuring a smooth termination of their agreement. Originally intended for use in the Province of Ontario, this form outlines the conditions under which both parties—seller and brokerage—mutually agree to release each other from their obligations under the initial listing agreement. More specifically, it addresses the release of the brokerage from any liabilities and the seller from any owed remuneration or compensation, with certain conditions regarding future sales within the listing or holdover period. It also details the responsibilities of notifying the Real Estate Board(s) of the cancellation if it concerns an MLS® listing and establishes the effect of signing the agreement by including not only the immediate parties but also their successors, heirs, and assigns. The document concludes with provisions for the formal signing in the presence of witnesses, underscoring the formality and legal significance of the agreement. Notably, it is developed and regulated by the Ontario Real Estate Association (OREA), emphasizing compliance with rules and the maintenance of professional standards in the real estate sector.

QuestionAnswer
Form NameCancellation of Listing Agreement Form
Form Length1 pages
Fillable?Yes
Fillable fields18
Avg. time to fill out3 min 51 sec
Other namesEXPIRY, listing cancellation form, covenants, licensees

Form Preview Example

Form 242

Cancellation of Listing Agreement

Authority to Offer for Sale

for use in the Province of Ontario

RE: LISTING AGREEMENT AUTHORITY TO OFFER FOR SALE (Agreement) FOR:

PROPERTY ADDRESS: ...................................................................................................................................................................................

BETWEEN:

SELLER: ..........................................................................................................................................................................................................

AND

BROKERAGE: .................................................................................................................................................................................................

MLS® NUMBER(S):

L/BR ID. #

INTERBOARD MLS® NUMBER:

BOARD:

AGREEMENT EXPIRY DATE:

The Seller and the Brokerage, by mutual consent, hereby release each other from the above described Agreement on the following terms:

The Seller releases the Brokerage from any and all liabilities, covenants, obligations and claims arising out of the Agreement.

The Brokerage releases the Seller from any claims of remuneration or compensation with respect to this Agreement, save and except that:

If an offer to purchase, obtained from anyone who was introduced to the property from any source whatsoever while the Agreement was in effect or was shown the property while the Agreement was in effect, is agreed to or accepted by the Seller or anyone on behalf of the Seller within the Listing Period or the Holdover Period provided for in the above described Agreement, the Seller agrees to immediately notify the Brokerage of the sale and to pay the Brokerage the commission agreed to in the Agreement.

If, however, the offer for the purchase of the Property is pursuant to a new agreement in writing to pay commission to another registered real estate brokerage, the Seller’s liability for commission shall be reduced by the amount paid by the Seller under the new agreement.

The Brokerage agrees to immediately notify the Real Estate Board(s) of the cancellation in accordance with the MLS® Rules and Regulations, provided that this is an MLS® listing.

This Cancellation of Listing Agreement shall not take effect unless signed by all parties set out below.

For the purposes of this Cancellation of Listing Agreement: “Seller” includes vendor and Real Estate Board(s) includes Real Estate Association(s).

The heirs, executors, administrators, successors and assigns of the undersigned are bound by the terms herein.

All of the undersigned, hereby acknowledge receipt of a copy of this Cancellation of Listing Agreement.

SIGNED, SEALED AND DELIVERED in the presence of:

IN WITNESS whereof I have hereunto set my hand and seal:

 

 

(Witness)

......................................................................................

(Seal)

.................................

(Seller)

(Date)

(Witness)

......................................................................................

(Seal)

.................................

(Seller)

(Date)

SIGNED, SEALED AND DELIVERED in the presence of:

IN WITNESS whereof I have hereunto set my hand and seal:

 

 

 

......................................................................................

 

 

 

(Name of Brokerage)

 

 

(Witness)

......................................................................................

(Seal)

.................................

(Signature of Brokerage’s Broker of Record/Manager)

(Date)

The trademarks REALTOR®, REALTORS®, MLS®, Multiple Listing Services® and associated logos are owned or controlled by The Canadian Real Estate Association (CREA) and identify the real estate professionals who are members of CREA and the quality of services they provide. Used under license.

© 2019, Ontario Real Estate Association (“OREA”). All rights reserved. This form was developed by OREA for the use and reproduction

 

 

by its members and licensees only. Any other use or reproduction is prohibited except with prior written consent of OREA. Do not alter

Form 242 Revised 2019

Page 1 of 1

when printing or reproducing the standard pre-set portion. OREA bears no liability for your use of this form.

 

 

Dec/2018

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