How do I cancel a listing agreement with a real estate agent?

Answer:

It can be done, but it rarely works out well.

How do I cancel a listing agreement with a real estate agent?

Once you sign a listing agreement, expect to work with that agent until the specified length of time expires.

This can be anywhere from a few months to a year or more.

Really, the time to think about ending a listing agreement (or any other kind of contract), is BEFORE you put your name on the dotted line.

NOTE: When listing with Creekview Realty, you can cancel anytime with no strings attached.

The Hard Truth

Listings tend to be iron-clad, stuck-on-the-ride-until-it-is-over kind of things. The agent can agree to let you out of it, but in many cases it is against the policy of the broker.

One thing to be aware of is the “Safety Clause.” In a nutshell, the safety clause entitles the broker to a commission–after the contract ends?!

It can be as short as 30 days or as long as a year. It is designed to protect the broker from collusion between the buyer and seller.

How it Works

Say the buyer and seller try to work out a sale on the side, in an attempt to avoid the fees, the seller is still liable.

For instance, even if the listing has expired, if a buyer comes along and the broker argues in court that they were brought in by the advertisement of the listing agent, there may be a way for them to get a commission from the sale.

If you have already signed the agreement and you are really unhappy, you should at least attempt to wiggle out of it.

First, try going directly to the agent and asking them to cancel the listing. Maintain a good rapport with the agent because most likely they represent your best chance to break the agreement.

If they refuse to play, you can then go to their broker. You may be able to get a broker to nullify the listing agreement, but at this point I wouldn’t hold my breath.

After that, if you are still committed to breaking your listing agreement, you will have to locate an attorney that specializes in real estate law.

Bottom line:

Breaking up is hard to do. Think long and hard before you sign a listing agreement.

By | 2015-04-15T20:57:10-06:00 April 15th, 2015|Contract Questions|