You did your research, found a real estate agent who you thought was right for the job, and signed an agreement for the professional to list your property. But when time goes by – and your house doesn't sell – you may be wondering: Can you terminate this real estate contract – and if so, at what cost?

In a perfect world – a world where we all read the fine print before we sign a legally binding document – you already know the answers to these questions because they are in the listing agreement you signed.

But this is the real world – a world where many of us sign things up in a hurry and don't expect any problems to arise. If this is the case for you, here are some things you need to know in order to terminate a listing agreement.

What is in your listing contract?

Of course, nobody can force you to sell your home, but real estate brokerage contracts are legally binding contracts.

Listing agreements vary between real estate companies, property managers, and cities and states. In general, however, they all typically include a time frame that they cover for a particular property. If the contract doesn't include a cancellation fee, you can cancel at any time and you'll be off the hook. However, many list a fee that will be billed to the seller if the contract is canceled before that expiration date.

The fee often covers the agent's time and expense. This may include the costs incurred by the agent to have your property listed on the multiple listing service in your area, as well as forms, photos, videos, brochures and other means of promoting your home. In some cases, the fee is a percentage of the list price.

If there are any fees, you can always wait for the contract to be completed to avoid the possibility of having to pay them. In many cases, however, you can clarify something with your real estate agent even if you cancel early.

"If you quit early, chances are the broker will let you off the hook for the remainder of the contract – at least most of us – especially if the homeowner requests that termination," says Maria Jeantet is a real estate agent at Coldwell Banker C&C Properties in Redding, CA. "It all depends on what you do when you tell them you want to cancel."

Reasons for terminating a listing agreement – and alternatives

The reasons why people want to terminate a listing contract vary. If you've decided not to sell your property after all, that's one thing. But if you want to cancel the listing because you're not happy with your agent's advertising, or disappointed that they're not getting as many views or offers as you hoped, that's another matter. The latter can often be worked out with your agent through clear communication about what you are unhappy with and what changes you would like to see.

Jeantet says it's best to always be direct with your agent.

"Keep it clean. Either speak heart-to-heart to your current agent about the resignation or talk to them about getting more of their service for you," she says.

If this is not effective, you can also contact a broker's brokerage firm (if your broker is not the broker / owner) to discuss the issues and possibly reassign a different agent.

If nothing can be resolved, it may be in your best interest to cancel, even if you have to pay a fee.

Make sure you get the cancellation in writing because if you are listing your home with a new agent within the time period covered by the listing agreement and there is no written cancellation from your current agent, your current agent will be able to claim commission fees if the home sells. Look back at your listing agreement to see what it says.

Not all real estate relationships work, people change their minds, and circumstances change. This is why it is so important to do a thorough research when choosing a real estate agent and carefully review the contents of a listing agreement before signing it.

source https://seapointrealtors.com/2021/08/12/are-there-fees-for-canceling-a-real-estate-agent-contract/

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