Choosing an agent and a listing agreement to sell your lot to a builder

Key takeaways

• Check an agent on RECO's public register, which shows registration status, the expiry date and enforcement actions from the past five years.
• An Ontario listing agreement must show its one expiry date on the first page, with your initials next to it.
• The agreement must set out how commission is worked out, when it can change, the services you get and any terms for ending it.
• Your agent must pass on every written offer as soon as possible, whoever the buyer is.
• Builders who make offers are told how many competing offers there are. You decide whether they also see what those offers say.
• An agent must disclose a conflict of interest, and any payment they may get from someone else in connection with your sale.
• No advertisement may identify your property or your sale price without written consent.

Why the agent matters on a sale to a builder

A sale to a builder needs extra work from the agent. Someone has to read the zoning, work out how many homes the lot could hold, find the builders who build that kind of project, and then compare offers that differ in price, conditions, deposits and closing dates. The agent you choose decides how much of that work is done for you, and the listing agreement you sign decides what you can expect in writing.

A listing agreement is the contract between you and a real estate brokerage. Ontario's rules call it a seller representation agreement. RECO, the Real Estate Council of Ontario, is the body that registers and regulates agents and brokerages in the province. Every rule below comes from Ontario Regulation 567/05, Ontario's real estate Code of Ethics (Ontario Regulation 365/22), or a RECO document. I read each one on November 8, 2026.

The sellers overview explains how commission is set, what a holdover clause is and how to check the register. Below are the parts of the agreement to read before you sign, and the duties your agent owes you once a builder makes an offer.

What to ask an agent before you sign

Start with the register. RECO's page on checking an agent says its public register shows the agent's name, registration number, registration status, the expiry date of the registration and enforcement actions from the past five years. For a brokerage it also shows the broker of record and the owners. Confirm the status reads "registered" before you go further.

Then ask each agent you meet the same questions, and compare the answers.

1. What could my lot hold under its zoning, and how did you work that out? A builder prices the homes a lot could hold, so the agent should be able to show you the zone label, the frontage and the depth. The lot check guide shows how to read them yourself.
2. Do you or your brokerage act for any builders? If so, would you represent a builder that makes an offer on my lot? The guide to builder offers explains multiple representation, where one agent or brokerage acts for both sides.
3. How will you present the lot, and to whom? Some lots are offered to the public, some to a list of builders, some both.
4. How will you compare the offers with me? Builder offers differ in conditions and timing as well as price. The guide on how builders price land explains why two offers on one lot can differ.
5. What is the commission, when is it paid, and can it change?
6. How long is the agreement, how long is the holdover period, and how can I end it early?

What Ontario says a listing agreement must show

Section 13.4 of Ontario Regulation 567/05 sets the content of every written agreement between a brokerage and a buyer or seller. The brokerage cannot sign the agreement unless it shows each item below clearly, comprehensibly and prominently. Section 13.5 adds that if a brokerage makes a seller representation agreement that is not in writing, it must put the agreement in writing as soon as possible and before any buyer makes an offer.

RECO's Information Guide says you and the brokerage decide the commission between you, and that the agreement cannot base it on the difference between the listing price and the sale price. The guide sets no length for an agreement: it can last a day, a few weeks or months.

Write down the services you expect

The RECO Information Guide says there is no standard set of services. Brokerages offer different packages, and you choose the one that fits. The guide's advice is to put every service you need in the agreement or in a schedule attached to it, and not to assume a service will be provided if it is missing.

For a sale to a builder, the services that matter most are the zoning review, how the lot is described and presented, which builders see it, and help comparing offers that come with conditions. If you want the agent to keep the address off public advertising, or to present the lot only to builders who sign a confidentiality agreement, write that in as well.

How long the agreement lasts and how it ends

A builder often asks for a study period before it commits, and some offers then wait for City approvals. Think about the end date with that in mind. RECO's Information Guide reminds sellers that a holdover clause can mean you owe commission on a sale made after the agreement expires, and that there is no minimum or set length for the holdover period. Agree to its length before you sign.

For ending the agreement early, RECO's guide says the agreement should list all the cases in which it can end, and that you should know the penalties or costs that apply in each one. RECO's Bulletin 2.3 tells brokerages that termination clauses should address the money owed in each case. If the agreement says nothing about ending it early, ask the agent to add a term before you sign.

What your agent must do with builders' offers

Section 22.10 of Ontario Regulation 567/05 says your agent must give you every written offer as soon as possible after receiving it. This applies whoever makes the offer, whatever it contains and whatever the commission arrangements. The same rule covers written changes to offers, waivers of conditions and assignments of an agreement to another buyer. If your agent is away when an offer arrives, they must have someone in place to receive it and pass it to you. You can change these steps with written directions to your agent.

When more than one builder makes an offer, section 22.7 applies. The brokerage must tell each builder making an offer how many competing written offers there are. It shares what those offers say only if you direct it to, and you can choose to share only parts, for example only the closing dates. The shared information may not include anything that identifies who made an offer.

Section 23 (4) adds a rule on commission terms. If your agreement with your brokerage has commission terms that could affect whether an offer is accepted, the brokerage must disclose them to each person who makes a written offer, before any offer is accepted.

Conflicts of interest and payments from others

Section 13 of the Code of Ethics says an agent cannot act for you when their interests conflict, or may conflict, with yours, unless they have done four things: disclosed the conflict, advised you to get independent advice, made sure you understand it, and received your written consent. This matters on a sale to a builder, because an agent who works with builders may know the buyer.

Two rules in Ontario Regulation 567/05 make this specific.

• Section 22.9: if the agent, a person related to the agent, or a company the agent controls has a property interest in your property, the agent must disclose it to you and to every person making an offer, before any offer is made.
• Section 23.1: if the agent or a person related to them may receive a direct or indirect financial benefit from someone else in connection with your sale, the agent must tell you as soon as they know. The disclosure describes the benefit, gives an estimate of its value, states any conditions and explains the relationship. A brokerage that is paid under one agreement with you and another with the builder for the same sale must show each of you the terms of the other agreement.

Advertising your lot and letting builders visit

Section 12.1 of Ontario Regulation 567/05 limits what an agent may publish. An advertisement may not include anything that could identify a specific property unless the owner agrees in writing. It may not include anything that could reveal the terms of a sale agreement, including the price, unless the parties agree in writing. Every advertisement must also name the brokerage the agent works for.

Section 22.5 covers visits. An agent may give a person access to your property only if an agent is with them or you have agreed in writing. Builders often want to walk the lot, take measurements and look at the trees and the services before they offer. Decide in writing who may enter, when, and with what notice.

If something goes wrong

RECO's Information Guide says to raise a concern with the agent's brokerage first, because the brokerage can often settle it. The register names each brokerage's broker of record, the person responsible for making sure the brokerage follows the law. The guide also says a brokerage cannot ask you to sign an agreement that makes you withdraw a complaint to RECO or stops you from making one. If the brokerage does not settle it, the complaints section of RECO's website explains how to file.

Questions to ask before you sign the listing agreement

• Is this agent registered, and what does the register show for the past five years?
• Does the agreement show one expiry date on the first page, with my initials beside it?
• Are the commission, the cases where it changes and the payment date written out?
• Is every service I expect listed, including how the lot is presented and to whom?
• What happens, and what do I owe, if I want to end the agreement early?

I am a sales representative with Weiss Realty Ltd., Brokerage. When an owner asks me to sell a lot to builders, I review the zoning and lot size first, then we agree in writing on the services, the presentation and the dates before any builder sees the property. The For Sellers page shows how I work with owners, and the contact page is the way to reach me. Before you sign with anyone, ask one more question: what will this agent do for me before any builder sees my lot?

Frequently asked questions

Which real estate agent should I use to sell my Toronto lot to a builder?

Use a registered agent who can show you what your lot could hold under its zoning, who will tell you whether they also act for builders, and who writes the services you expect into the listing agreement. RECO's public register shows each agent's registration status, the expiry date and enforcement actions from the past five years. Check it, then compare two or three agents before you sign.

What must appear on the first page of an Ontario listing agreement?

The expiry date must appear prominently on the first page of an Ontario listing agreement, and you must initial the agreement next to it. Section 13.4 of Ontario Regulation 567/05 sets this rule and says the agreement may contain only one expiry date. RECO's Bulletin 2.3 adds that the rule applies whatever the length of the agreement.

What must an Ontario listing agreement say about commission?

An Ontario listing agreement must clearly set out how the commission to your brokerage is worked out, how much, if any, you will pay a buyer's brokerage, when either amount can change and how, and how the commission is paid. Section 13.4 of Ontario Regulation 567/05 requires each of these. RECO's Information Guide adds that the amount cannot be based on the difference between the listing price and the sale price.

How long should a listing agreement to sell my lot to a builder last?

A listing agreement to sell your lot to a builder can last as long as you and the brokerage agree. RECO's Information Guide says there is no set time or standard term: an agreement can last a day, a few weeks or months. Pick an end date that gives time to present the lot to builders and compare their offers, and check the holdover period, which can make you owe commission after the end date.

Can I cancel my listing agreement early in Ontario?

Whether you can cancel your listing agreement early in Ontario depends on the termination terms written into it. Section 13.4 of Ontario Regulation 567/05 says the agreement must clearly set out any terms on ending it. RECO's Information Guide says the agreement should list every case in which it can end, and tells you to check the penalties or costs that apply in each case before you sign.

What services should a listing agreement for a builder sale include?

A listing agreement for a builder sale should list every service you expect, such as a zoning review, how the lot is presented and to whom, and help comparing offers. Section 13.4 of Ontario Regulation 567/05 says the agreement must clearly set out the services. RECO's Information Guide says there is no standard set of services, and tells sellers not to assume a service will be provided if the agreement leaves it out.

Does my agent have to show me every offer a builder makes on my house?

Your agent has to give you every written offer a builder makes on your house as soon as possible after receiving it. Section 22.10 of Ontario Regulation 567/05 says this applies whoever makes the offer, whatever it contains and whatever the commission arrangements. The same rule covers changes to offers, waivers of conditions and assignments. You can give your agent different directions in writing.

Can I tell builders what the other offers on my lot say?

You can tell builders what the other offers on your lot say, through your brokerage. Section 22.7 of Ontario Regulation 567/05 says the brokerage must tell each person making an offer how many competing written offers there are, and must share their substance if you direct it. You can choose to share only parts. The brokerage may not reveal who made each offer.

Can my real estate agent or a relative of my agent buy my lot?

If your agent, a relative of your agent or a company your agent controls wants to buy your lot, the agent's interests may conflict with yours. Section 13 of Ontario's real estate Code of Ethics says the agent cannot keep acting for you unless they disclose it, advise you to get independent advice, make sure you understand it and get your written consent. Ask your lawyer to review that offer.

Does my agent have to tell me if a builder pays them for my lot?

Yes. If a builder or anyone else may pay your agent, or a person related to your agent, in connection with your sale, your agent must tell you as soon as they know. Section 23.1 of Ontario Regulation 567/05 says the disclosure must describe the benefit, estimate its value, state any conditions and explain the relationship. A brokerage paid under two agreements for one sale must show each side the other's terms.

Can my agent advertise my lot or my sale price without my permission?

Your agent cannot advertise your lot or your sale price without your written consent. Section 12.1 of Ontario Regulation 567/05 says an advertisement may not include anything that could identify a specific property unless the owner agrees in writing, or anything that could reveal the terms of a sale agreement, including the price, unless the parties agree in writing. Say in the listing agreement what may be published.

Can my agent let a builder see my lot when I am not there?

Your agent can let a builder onto your property only if an agent is present or you have agreed in writing. Section 22.5 of Ontario Regulation 567/05 sets this rule for every registrant. Builders often want to walk the lot, measure it and look at the trees and services before they make an offer, so agree in writing who may enter, when and with what notice.

How do I complain about a real estate agent in Ontario?

To complain about a real estate agent in Ontario, start with the agent's brokerage, then go to RECO if you need to. RECO's Information Guide says the broker of record, the person responsible for the brokerage following the law, is named in RECO's public register. It also says a brokerage cannot ask you to sign an agreement that makes you withdraw a complaint to RECO or stops you from making one.

Sources

1. O. Reg. 567/05: General, under the Trust in Real Estate Services Act, 2002. Government of Ontario, e-Laws. Consolidated from December 1, 2023, last amended by O. Reg. 235/23. Accessed November 8, 2026.
2. O. Reg. 365/22: Code of Ethics, under the Trust in Real Estate Services Act, 2002. Government of Ontario, e-Laws. Consolidated from December 1, 2023, last amended by O. Reg. 234/23. Accessed November 8, 2026.
3. Working with a real estate agent: Things you need to know (RECO Information Guide, Residential). Real Estate Council of Ontario. Content December 1, 2023, graphics April 2025. Accessed November 8, 2026.
4. RECO Bulletin 2.3: Representation agreements. Real Estate Council of Ontario. No date shown on the web page. Accessed November 8, 2026.
5. Make sure your real estate agent is registered. Real Estate Council of Ontario. No date shown. Accessed November 8, 2026.

Planning and development potential is property-specific and subject to zoning, approvals, site conditions, municipal review and other due diligence. This guide gives general information. For legal, tax or financial advice, ask your own lawyer and accountant.