Cancellation of Listing Agreement Form – Fill Out and Use This PDF

Cancellation of Listing Agreement Form PDF Details

When a seller and a real estate brokerage decide to end their arrangement before a property is sold, they need a formal document to record that decision. Form 242 is that document. Developed by the Ontario Real Estate Association (OREA), it is the standard form used throughout Ontario to end listing agreements in the province.

The form addresses these key provisions:

• Mutual release: Both the seller and the brokerage agree to release each other from all obligations under the original listing agreement. This ends any ongoing duties on both sides.
• Holdover period rules: The seller may still owe a commission after the effective date. This applies if a buyer who was introduced to the property during the listing period purchases it within the holdover period stated in the original agreement.
• MLS notification: If the property was listed through an MLS service, the brokerage must notify the relevant Real Estate Board(s). The brokerage must also remove the listing from the MLS system.
• Binding on related parties: The agreement applies not just to the immediate parties. It also binds their successors, heirs, executors, and assigns.
• Formal execution: Both the seller and the brokerage must sign the form in the presence of a witness. The agreement takes legal effect only after all required signatures are in place.

Once all parties sign, the brokerage's authority to market and sell the property ends immediately. Any active advertising must stop. If the listing was on an MLS system, the brokerage is responsible for removing it from that service within the required timeframe.

Before signing, both the seller and the brokerage should review the original listing agreement together. This helps confirm the holdover period length, any outstanding obligations, and whether compensation conditions have been met. A clear understanding of these terms prevents disputes after the agreement is signed.

OREA revises Form 242 periodically to reflect changes in Ontario's real estate regulations. The form is used across all types of residential listing agreements in the province and is recognized by all Ontario Real Estate Boards. Always use the most current version when terminating a listing agreement.