How to Cancel a Contract with your Realtor
Any Realtor isn’t always the right Realtor. Sometimes even after you have done your research and have found a Realtor, the buying or selling process may still be a difficult one.
You may find yourself in a position where there doesn’t seem to be any progress, and you ask yourself: “Can I work with another Realtor?” or even “Can I cancel my contract with my Realtor?”
Top 10 Reasons to Cancel your Contract
1 - The Property that has been listed isn't selling.
2 - The home buying process is long and unsuccessful.
3 - The communication with your Realtor is not responsive.
4 - The Realtor does not understand what your needs are.
5 - The advice your Realtor has given you is not trustworthy.
6 - Your Realtor is unprofessional and is not great to work with.
7 - Your offers have been unsuccessful most of the time.
8 - Your Realtor is not delivering the best service to you.
9 - Marketing and other services have not been up to your standards.
10 - Your realtor does not know the range of current market value of your property.
Exclusive buyer and seller contracts can be long and detailed, and some realtors may not communicate with you the cancellation terms at the start of your business relationship. You may feel uncomfortable with cancelling a listing or buyer contract, but sometimes it is unavoidable. How do you get out of a contract and what should you expect? Well, let’s talk about it.
First, let’s answer the first question. Can you cancel your contract with your realtor? The short answer is: yes. Although it is possible, it is important that you understand the contract you have signed, because a Realtor contract is legally binding. More importantly, there may be some costs involved with terminating a contract, but let us get into more detail.
What contracts are there?
As a Seller: You will have signed a listing agreement when you decide to list your home. This states that you are working with a specific Realtor and their brokerage in assisting with the sale of your property.
As a Buyer: Your real estate agent may have had you sign a Buyer Representation Agreement (BRA) or even an Exclusive Buyer Contract, before putting in an offer for a home. This contract is a working agreement and lists the expectations for each party involved with the contract. If your Realtor has violated any of the expectations or clauses in the contract, then you can use that as a basis for terminating your business relationship.
Seller - How do you terminate a listing contract
The first step in canceling a listing contract is talking to your realtor to see if they are willing to cancel the contract. Sometimes the Realtor will see that it is worthwhile to cancel their relationship with the client. In this industry, a Realtor relies heavily on referrals and reputation, so if a relationship goes south, word can get out that this Realtor is troublesome to work with. Nobody wants that in their reputation.
If for whatever reason the Realtor refuses to end the contract, then you should ask the agent’s brokerage to be reassigned to another agent. If this request is not entertained, or the Realtor violated the terms of the agreement, then you can file a complaint with the appropriate Real Estate Board.
Lastly, if you don’t feel comfortable with doing any of these steps, you can always wait until the terms of the contract have reached the duration of the contract. This is a last resort.
There are 2 ways to get out of the contract:
Cancellation - A cancellation will bind you for 55 days or till the end of the contract, whichever comes first.
Unconditional Release - This provides immediate relief to the contract, and you can find another realtor from any brokerage once this is signed and submitted.
Buyer - How do you terminate a contract as a buyer
Once you have signed an Exclusive Buyer’s Representation Agreement (BRA), you are legally bound to a real estate brokerage by the terms of the agreement. However, if the realtor has violated any of those terms, the can be an easy out to the contract.
Again, your first step to cancelling your contract with your realtor should be to communicate with them. See if the Realtor is willing to cancel the contract early, as they will want to keep their reputation and make this an easy process.
If they are not willing to cancel the contract, look at the terms to see if your realtor has violated any of the terms, or if the “provision of schedules” section allows you to end the business relationship early. A provision for schedules may require a secondary agreement, called a release.
Frequently asked questions on cancelling realtor contracts
How long do these contracts last?
It depends on the Realtor, as contracts vary, and are negotiable before signing a Listing Agreement or BRA. Most last between 3 months to even a year.
Can a Realtor sue for breaching a listing or buyer contract?
This is rare, but there have been instances where your Realtor’s brokerage sued the client to collect on commission, even when a sale falls through. Again, keep in mind, it’s not in the best interest for the Realtor to sue his clients.
Do I owe money to my Realtor once I have gotten out of the contract?
The answer to this is, it depends. For instance, if you get out of a listing contract, you may be obligated to reimburse your realtor for certain fees and services such as staging, photos, marketing materials, etc. Some realtors will just let it slide and not charge their client on these services.
Ready to sign with me?
I am an educated Realtor® with the Stonehaus Realty Corp. I know how frustrating it can be trying to work with a Realtor and not getting results. My clients choose to work with me and I want to provide my clients with services that exceed their expectations. I can assure you that I conduct myself in a professional manner, and I am available to my clients at all times of the day. Don’t let a negative experience with a Realtor stop you from trying to find or list your property. Connect with me today, and let’s make your dreams come true.
