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

The Cancellation of Listing Agreement form, also referred to as Form 242, is a document utilized in Ontario for formally terminating an agreement between a seller and a brokerage that had previously granted the brokerage authority to offer a property for sale. It ensures that both parties mutually release each other from the commitments outlined in the initial agreement, detailing conditions under which the seller might still owe compensation to the brokerage even after cancellation. This form becomes effective only when signed by all required parties, emphasizing its importance in safeguarding the interests and clarifying the obligations of both the seller and the brokerage. To make sure all conditions are fully understood and properly executed, consider filling out the form by clicking the button below.

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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.

Question	Answer
Form Name	Cancellation of Listing Agreement Form
Form Length	1 pages
Fillable?	Yes
Fillable fields	18
Avg. time to fill out	3 min 51 sec
Other names	EXPIRY, listing cancellation form, covenants, licensees

How to Edit Cancellation of Listing Agreement Form Online for Free

To complete Form 242 online, click the "Get Form" button at the top of this page. FormsPal's PDF editor opens directly in your browser. No downloads or software installation are needed.

What You Need Before You Start

Gather the following before you open the form:

A copy of the original listing agreement between the seller and the brokerage
The full legal names of all signing parties: the seller and the brokerage's authorized representative
The property address
The listing start and end dates
The holdover period length stated in the original agreement
The MLS listing number, if the property was listed through an MLS service

How to Fill Out Form 242 Step by Step

Step 1: Open the form. Click the "Get Form" button above. The PDF editor loads in your browser instantly. You can begin entering information in the form fields right away.

Entering seller and brokerage details in Form 242 cancellation of listing agreement

Step 2: Enter the party and property details. Fill in these required fields:

Seller's full legal name
Brokerage name and the name of the authorized representative
Address of the listed property
Effective date of the cancellation

Step 3: Review the release and compensation clauses. Read the mutual release section carefully. Pay close attention to the holdover clause. This clause may still require the seller to pay a commission if the property sells to a buyer who was introduced to it during the original listing period.

Step 4: Address the MLS notification section. If the listing was on an MLS service, confirm that the brokerage will notify the relevant Real Estate Board. This responsibility rests with the brokerage. It must also remove the property from the MLS system promptly after signing.

Step 5: Arrange for signatures and witnesses. Both the seller and the brokerage representative must sign the form. Each signature must be witnessed and dated. The document has no legal effect until all signatures are obtained.

Signature fields for seller and brokerage on Form 242 listing cancellation form

Step 6: Save and download your completed form. When all fields are filled, click "Done." You can download the signed document as a PDF, print a copy for your records, or share it securely with the other party. Your account at FormsPal stores completed forms for easy access later.

Things to Watch Out For

A few details can cause problems if overlooked:

Unsigned forms are not valid. Both parties must sign before the agreement takes effect. A form signed by only one party does not end the listing agreement.
The holdover period remains active. Even after signing Form 242, the holdover clause from the original listing agreement continues. Review the holdover period dates in your original contract before finalizing the cancellation.
MLS removal takes time. The brokerage must notify the Real Estate Board and remove the listing from the MLS system. Confirm this has been done if the property was publicly listed.
Use the current version. OREA updates its forms periodically. Always verify you are using the most recent edition of Form 242.

Common Questions About Form 242

Can a seller cancel a listing agreement without the brokerage agreeing?

No, not through this form. The agreement requires signatures from both the seller and the brokerage. If the brokerage does not sign, the original listing agreement stays in force. If both parties cannot agree to cancel, the seller may need to consult a real estate lawyer.

What is the holdover period and does it apply after cancellation?

The holdover period is a period of time set in the original listing agreement. During this period, if a buyer who was shown the property during the listing period makes a purchase, the seller may still owe the brokerage a commission. This obligation does not go away when you sign the cancellation form. The length of the holdover period varies and is stated in your original listing agreement.

Is Form 242 only for use in Ontario?

Yes. OREA developed Form 242 for listing agreements in Ontario. If you are in a different province or territory, you will need a different document. Contact your local real estate board for the correct form in your area.

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