Divorce sale? Use two agents
Q My partner and I are divorcing and selling our home. Can we use different real estate agents?
A The short answer is: Yes.
Selling a home because of a divorce is bound to be an uncertain and stressful experience. Ideally, it’s simpler if you can both agree on one real estate agent.
However, if that is not possible, then you have two options.
The first choice is working with two brokerages to list your home. This is known as a co-listing agreement, also sometimes referred to as a co-brokerage agreement.
This approach can be very effective in helping both individuals navigate the sale of their property while protecting their respective interests. Each party has their own designated real estate agent, backed by a different brokerage. In addition to facilitating the sale of the home, co-listing agents can support other related matters like ensuring that legal requirements — such as holding proceeds from the sale in trust — are met.
It is important to note, however, that when entering a co-listing agreement, the two brokerages will provide their services separately.
When selecting agents, I strongly suggest you ask questions about how the brokerages will handle the co-listing. Ask how they’ll list, market and show the property, review the offers and negotiate the closing date of a sale. Consider looking for an agent who is experienced with co-listings that involve the disposition of a matrimonial home.
Remember that agents are required to put all the details about the sale or purchase of any property in writing. So, reflect on how you would like the brokerages to share services necessary for the sale, and have it documented so that everyone is on the same page. Perhaps one brokerage will arrange the showings while the other will manage advertisements, for example. They both will review offers with your interest in mind.
The agreement should spell out the services to be included and the total commission you have agreed to pay, and how that will be divided between the two brokerages.
The other alternative you may wish to consider is having two separate agents who work for the same brokerage. From an optics standpoint, this will look like a standard sale to potential buyers. It will also be easier for the agents to speak with each other, making it a more seamless process for you.
However, each agent should communicate exclusively and directly with the partner they are representing and include that partner’s lawyer in the process. If the divorce is contentious, the brokerage may not be able to represent both partners due to conflict of interest.
With either option, remember that the basic steps to selling a home don’t change — regardless of your circumstances. Be transparent about how you would like the sale to be handled, and determine which services will be provided and by whom. Be sure that your matrimonial lawyer is kept in the loop.
As with any other contract, it is of course important to read and understand all the fine print before you sign. I also think it is a wise idea to consult a lawyer who is insured to practise real estate law before making any final decisions.
IF YOU HAVE A QUESTION FOR JOE ABOUT THE HOME BUYING OR SELLING PROCESS, PLEASE EMAIL INFORMATION@RECO.ON.CA.
JOE RICHER IS REGISTRAR OF THE REAL ESTATE COUNCIL OF ONTARIO (RECO). THIS COLUMN IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT MEANT AS LEGAL OR PROFESSIONAL ADVICE ON REAL ESTATE TRANSACTIONS. FOLLOW RECO ON TWITTER: @RECOHELPS