Ask Ozzie JurockNo Comments

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Q: How long is it normal for a listing contract to be valid? My realtor tells me that I have to wait six months before I can cancel it. I also have to sell it if he brings me a full price offer, but we want to raise the price. Is that right?

A: It is valid for the period you have signed it for. A listing agreement is an agency agreement. However, I would never give my realtor six months. I would suggest 60 days for a normal residential property. (You want it on MLS and the minimum time right now is 60 days). You can always renew your listing contract, provided you have received the service you were promised. If a realtor brings you a full price offer, you may be liable to pay the commission but you do not have to accept a full price offer. You can certainly raise the asking price at any time. You can also cancel your agreement at any time; but again, you might be liable to pay a commission if you end up selling it during the listing period.

Last week follow-up:

Thanks for the follow-up questions on taking money out of your RRSP.

1. Here are some guidelines about using RRSP cash money to invest in a private Canadian company:

http: //thetaxissue. com/2011/01/25/whats-yourtax-issue-using-rrsp-funds-forprivate-company-investment/

2. Read a government circular on guidelines that govern qualifications for being a first-time buyer that allow you to take up to $25,000 out of your RRSP (you have to pay it back):

http: //www.cra-arc.gc.ca/tx/ ndvdls/tpcs/rrsp-reer/hbp-rap/ menu-eng.html

Ozzie Jurock is a senior real estate adviser at www.jurock.com. He can be reached at oz@jurock.com.

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