Mackenzie Elvin

When selling a property, it is usual to sign a listing agreement with a real estate firm.

Following the new Real Estate Agents Act which was passed in November 2009 the standard real estate listing agreements have been extended to include additional warranties, undertakings and indemnities by the vendor in respect of the property.

Examples:

A warranty that the building is weathertight and free from hidden or underlying defects;

An indemnity giving the real estate agent the right to recover from the owner if the real estate agent is sued due to incorrect or incomplete information provided by the owner.

In summary:

It is important that you are careful about giving these kinds of contractual warranties, undertakings and indemnities because they impose a legal liability on you. Before you sign the agreement you may wish to seek legal advice.