Know the risks of not using a broker

I’m getting ready to sell my home, and I’m thinking about handling it myself. Is there a way I can get it listed on Realtor.ca?

The short answer to your question is yes - you can arrange for a real estate brokerage to post your listing on the Multiple Listing Service (MLS), and then personally perform most of the services that are usually handled by a brokerage. It’s known as a limited services arrangement, or “mere posting.”

Selling your home on your own is not an easy endeavour. It can take up a lot of time and require some specialized knowledge. Do you know how to market your home and arrange showings, other than putting a sign out and hoping interested buyers stop by? Do you understand the rules around what you are required by law to disclose to buyers, such as defects? Are you skilled at negotiating deals and reviewing offers? Do you know how much you can expect to get for the home and can you set a listing price that’s realistic and attractive to buyers?

Real estate brokerages vary when it comes to services; you may have to shop around for the one that will best suit your needs. If you do enter a mere posting agreement, the brokerage still has an obligation to ensure the information in the listing is accurate, and not misleading or deceptive, so you can expect a brokerage representative to confirm the information you provide, along with any claims you make about square footage, renovations, and other key features.

There’s another reason to sell your home through a registered real estate brokerage: security. Real estate salespeople, brokers and brokerages must register with the Real Estate Council of Ontario (RECO) in order to practise their profession. Registered salespeople and brokers are required to:

Complete courses before they can enter the profession, and then keep their knowledge up-to-date by taking additional courses every two years;

Comply with the Real Estate and Business Brokers Act, 2002 (REBBA) and its Code of Ethics, which are enforced by RECO;

Maintain consumer deposit insurance, which protects your deposit in a real estate transaction against fraud, insolvency or misappropriation.

If you’re relatively experienced in buying and selling properties, and you’re considering using just the posting option, I still recommend discussing the matter with a salesperson, and with a lawyer who is insured to practise real estate law, since you will need one to finalize the transaction.

If you have a question for Joe about the home buying or selling process, please email askjoe@reco.on.ca. Joe Richer is registrar of the Real Estate Council of Ontario (RECO) and contributor for the Star. Follow him on Twitter: @RECOhelps