Delisting Your Condo: Consequences, Costs, and Next Steps

This past June, RBC reported that home resales fell sharply in several of Canada’s largest markets compared with June 2023: Calgary (-13%), Toronto (-16%), Vancouver (-19%) and the Fraser Valley in British Columbia (-32%). While each city’s market has its own characteristics, the largest markets have been among the hardest hit. For example, the Toronto Regional Real Estate Board reported that sales in the Greater Toronto Area in June 2024 were the lowest in 24 years. Inventory for condominiums, in particular, has been rising quickly.

That rising supply is welcome news for prospective condo buyers, who now have more selection and negotiating power. For condo sellers, however, the imbalance creates challenges: many face pressure to lower asking prices, or they may choose to remove their units from the market until conditions improve.

More condo owners are opting to delist rather than sell at an unsatisfactory price. What consequences should they expect when they take their property off the market?

Will you have to reimburse your realtor for their expenses?

In Ontario, the Trust in Real Estate Services Act requires agents to provide clear disclosures to sellers, which protects sellers who decide to delist. Other provinces, including British Columbia, Alberta and Manitoba, have introduced or updated similar rules in recent years.

When an agent lists a property, they must give the seller a schedule that outlines the services to be provided and who will pay for them. Services such as staging or MLS listing fees are generally considered part of an agent’s cost of doing business. It’s uncommon for a seller to be left holding those costs after removing a listing.

There is an exception, however: any obligation for the seller to cover specific expenses should be explicitly stated in the listing agreement. As Ahren Spylo, a broker with Keller Williams Realty in Waterloo, Ont., explains, agents may offer staging or minor repairs as part of the listing, but if the parties agree that those services will be reimbursed if the property is taken off the market, that arrangement needs to be documented in advance. Always read and understand the listing agreement before you sign.

Are there less tangible costs to delisting a condo?

Yes. A property that is removed from the market without selling can carry a degree of stigma or raise questions among future agents and buyers: why did the listing end without a sale? While this reputational effect is difficult to quantify, it may complicate future marketing.

There are also very real opportunity costs. A failed sale or a delisting can disrupt personal plans—accepting a job in another city, moving dates, financing arrangements—or force additional expense, such as upgrades to make the unit rentable or suitable for a growing household.

What if you get an offer at your asking price, but change your mind?

Receiving an offer at your asking price does not automatically bind you to sell. Until both parties have signed a legally binding agreement of purchase and sale, the seller generally remains free to decline an offer. If an accepted offer becomes a signed contract, then contractual obligations apply; before that point, a seller can choose not to proceed.

How can you improve the chances of selling for an acceptable price?

Timing and representation matter. Spring historically produces the most activity in the housing market, making it a better window to list if your goal is a quicker sale at a competitive price. Summer market activity tends to slow, and listings placed in late fall or winter typically take longer to sell.

Using an experienced realtor also improves your chances of achieving a favorable sale. Agents bring market knowledge, pricing strategy and negotiation skills that can help you hit—or exceed—your target. While some sellers try to save on commission by marketing privately, anecdotal evidence suggests private sales often result in lower-than-market prices. Moreover, commissions are negotiable; there is no single mandated rate.

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