Tips to Terminate Real Estate Contract Letter" /> Tips to Terminate Real Estate Contract Letter" />
No matter how carefully you look for the right real estate agent, sometimes this relationship just doesn’t work out. Yet before you can find another professional to help you buy a home, you will have to know how to terminate the buyer-broker agreement—the contract between you and your real estate representative.
“If you signed a contract, you are bound to it,” says Matt Laricy, a Realtor ® with Americorp Real Estate, in Chicago.
In other words: Don’t just do a slow fade-out and expect your agent to get your drift; you should tackle this issue head-on. And, as such, there is a right—and wrong—way to cut ties. Here’s some advice if you’re wondering how to terminate a buyer’s agent agreement.
The easiest option might be not quitting at all. If there’s a chance that you and your real estate agent are just getting your wires crossed, it might be worth trying to explain your concerns before you go through the hassle of terminating the contract.
“I suggest you have a meeting with your agent and his or her supervising broker to discuss your issues,” says Joyce Mitchell, a Realtor with Mitchell & Associates Real Estate, in Bigfork, MT. “That way you can figure out the best options to address either improving the relationship or terminating the agreement.”
Don’t want to arrange a “Godfather”-style sit-down with your current real estate agent? If you’re just ready to jump ship, start by reading the fine print on your buyer’s agreement.
“It will disclose under what conditions it can be terminated prior to its expiration,” says Alex Cortez, a Realtor with Wailea Village Properties, in Kihei, HI.
In most cases, “you should be able to terminate the agreement with a letter of cancellation or termination,” says Beverley Hourlier, a Realtor with Hilltop Chateau Realty, in San Diego. “Usually either side can terminate this way.”
But because this is a legal contract, don’t just part ways with a handshake.
“Make sure you get a signed termination from the Realtor just to cover your bases,” says Hourlier. This ensures your dissolution is legit.
If you can’t work an issue out with your agent directly and still want to terminate your real estate contract letter, consider going up the chain to your agent’s broker. A broker has taken education courses beyond the agent level, and passed a broker’s license exam. A broker can work on his own, but all agents must work for a broker, who acts as a supervisor of sorts. Brokers’ companies, called brokerages, can be large multinational firms or local boutiques, giving agents access to the multiple listing service, insurance, and other tools they need to interact with clients.
Basically, when you sign a contract to work with an agent, “this is a contract between you and the brokerage,” says Mike Grumbles, a Realtor with Exit Realty of the South, in Franklin, TN. When money is made off a home sale, those profits go first to the brokerage, then a portion is allocated to the agent involved.
The long and short of it is, if you’re unhappy with your agent, the brokerage will want to know because it affects the brokerage’s bottom line.
The other nice thing: The broker might be able to terminate the agreement without your agent’s input. Or, you might not have to cancel your contract at all, because “the broker may be able to merely assign you a different agent at the same brokerage,” says Grumbles. This can save you the hassle of finding a new agent.
One more tip to terminate your real estate contract letter? If talking to your agent and the broker isn’t getting you anywhere, you might want to reach out to a lawyer. Another option? Just wait it out—most contracts must be renewed after a certain amount of time anyway. Most of the time, you’ll be able to work something out without having to hire a third party.
But all in all, if you’re unhappy, it’s better to move on—for both of you.
“Ultimately it doesn’t benefit either of you to be ‘stuck’ with each other,” Cortez explains.
Angela Colley writes about real estate and all things renting and moving for Realtor.com. Her work has appeared in outlets including TheStreet, MSN, and Yahoo.
