Form 240, Amendment to Listing Agreement

Introduction to Form 240

Real estate transactions involving the sale or rent of property often utilize a listing agreement. When modifications are required to this arrangement, an Amendment to Listing Agreement or Form 240 is required. This invaluable document, which is a product of the Ontario Real Estate Association (OREA), caters to any modifications in the initial agreement struck between a property owner and their real estate broker.

Purpose of the 240 form 

The 240 form was created with one major objective: to allow amendments to an initially-agreed listing arrangement. Changes may occur for various reasons like extending the listing duration, adjusting the selling price, or revising property details. The form plays a valuable role in nurturing understanding and transparency amongst all parties involved. It guarantees that any changes made are not only agreed upon by everyone but also formally recorded and legally enforceable.

How to Fill Out Form 240 OREA

To fill out OREA amendment to listing agreement you should follow these key steps:

1. Start by finding the section of the form labeled "PROPERTY ADDRESS" and fill in the property's address subject to the listing agreement.
2. Next, provide the names of the seller and the brokerage involved in the agreement in the respective "SELLER" and "BROKERAGE" fields. Ensure you also include any relevant MLS numbers and identification numbers in the fields provided, which are essential for tracking the listing across multiple listing services.
3. Move on to the "LISTING EXPIRY DATE" section where you should enter the current expiration date of the listing. Directly below this, the form will have a section for amendments, where you can modify details such as the listing price and expiry date. 
4. Fill in the "Former Listing Price" and "New Listing Price" to reflect any changes. Similarly, update the "Former Expiry Date" and "New Expiry Date" as required.
5. In the section marked "OTHER AMENDMENTS," describe any additional changes to the agreement. This can include modifications to terms not covered by the predefined fields, like changes in commission structure, selling terms, or other specific conditions that were agreed upon by the parties involved.
6. Ensure that all modifications are compliant with local real estate regulations as mentioned in the Real Estate and Business Brokers Act, 2002. If the amendment extends beyond six months, the form requires the seller's initials next to this specification for validation.
7. Once all changes are detailed, review the rest of the form to confirm that all other terms and provisions of the original listing agreement are to remain in effect, as stated in the document. This ensures continuity and clarity regarding which aspects of the original agreement remain unchanged.
8. After completing the form, both the seller and the authorized representative of the brokerage need to sign and date the document in the provided fields. If applicable, the seller's spouse should also sign the section labeled "SPOUSAL CONSENT" to indicate their agreement to the amendments, following the stipulations of the Family Law Act.
9. Finally, double-check all entered information for accuracy and completeness to ensure the amendment to listing agreement form 240 is executed as intended and is legally binding.

Once you've successfully completed this OREA document, don't forget to save it and store it in a suitable place. This will help you keep an accurate record and will surely come in handy for future references.

When it's worth using the amendment to listing agreement 

Sometimes, a seller or realtor realizes that something within the existing amendment to listing agreement 240 needs amendment. This might be to accommodate changes in property value, market condition, or individual expectations. 

However, rather than creating a brand-new agreement (an often arduous process), an amendment to the listing agreement can be easily managed using Form 240. This document maintains the integrity of the initial agreement, with only the revised elements needing to be rewritten.

Also, please remember while navigating real estate agreements, it's prudent to get legal advice as and when needed. And keep in mind that properly filed paperwork is the cornerstone of success in any real estate transaction.