How to End a Realtor Contract the Right Way | Real Estate Representation Explained

If you're dissatisfied with your realtor's performance and want to terminate your contract, you should follow these steps. Number 1: Review the contract. Carefully review the terms of your agreement with the realtor, paying close attention to any clauses related to termination or cancellation. Note any specific procedures or requirements outlined in the contract. When it comes to agreements that you sign, Again, any real estate attorney or any attorney, when you ask about what do I do in the case of when it relates to a written agreement or contract, so much of the answer is going to depend on what is in the contract. So that's the logical first place to start. Review the contract that you signed very thoroughly for a second thorough reading, which you should have done a first thorough reading in the first place. It's important to note that if you work with a real estate agent and brokerage like mine, then breaking contracts is fairly easy. I don't want to ever have a client feeling like they're a prisoner to a contract, like they're handcuffed to me and want to get away. I believe in freedom and freedom of choice. If someone's dissatisfied, I want to make sure that they can move on if that's the choice that they make. So I offer easy exit guarantees. If you want to know more about that, check out my video where I talk more about what an easy exit guarantee is. I'll put a link in the description. All right. Number 2, document performance issues. Document specific instances of the realtor's poor performance or behavior that led you to consider terminating the contract. So whatever it is that is frustrating you, are causing you to think about breaking the contract, make sure that you're documenting those things. Include details such as missed deadlines, lack of communication, any unprofessional conduct, or failure to fulfill the contractual obligations. That's something important to understand, is that a real estate agreement, any contract imposes obligations on both parties. It's not a one-sided contract. So make sure again, you review the contract and that'll provide you guidance on how to proceed. Okay. Number 3, communicate your concerns. Open communication is always good. So you schedule a meeting or phone call with the realtor to discuss your concerns and express your desire to terminate the contract. In fact, you might even— probably if you've gotten to the point where you're asking this question, you kind of already made up your mind. That you're going to terminate the contract. It's always best. And this is probably a flaw of mine sometimes as well, is that we let— you can let things build up, build up instead of just addressing it the first time. So my advice would be to really get ahead of things. And I think it was Dr. Wayne Dyer I used to read who says, you know, you're treated how you allow yourself to be treated. So the first time an agent misses a deadline, bring it up. Don't wait for them to stack up. Agents are human beings too. So the earlier you address any concern, they can take corrective action and most people will, rather than letting it build up, build up to a frustration point where you're ready to terminate the contract. But if you are ready, then clearly explain the reasons for your dissatisfaction and provide examples to support your decision. Okay. Number 4, check for mutual agreement. In some cases, the realtor may agree to terminate the contract mutually, especially if they have acknowledged their shortcomings. Or if they're also dissatisfied with their working relationship with you. Discuss the terms of termination, including any potential financial implications or obligations. You know, sometimes there's just what my mother used to call a personality conflict, and maybe the realtor will be relieved to— that you're bringing up the, the concept of breaking the contract and going your separate ways. I know I have broken a listing agreement, for example, because I was representing a divorcing couple, and when I first started working with them, the husband appeared like he was willing to go along with the sale of the property. Later, what— he started behaving in ways that were very curious. He would remain on the property and kind of give, for lack of a better way to describe it, give the evil eye to buyers and buyers' agents during their showings. And he was really acting in a way to thwart the sale of the property because, in my opinion, he was bitter about having to sell it through the divorce settlement. So in that case, my professionalism— I felt like it was unprofessional for me to be actively marketing the property for sale when I didn't have a ready, willing, and able seller, or a pair of sellers. So I broke my listing agreement. Turns out that through different court stuff, that listing came back to me, and I was able to follow through with a successful sale on their behalf. But that was only after that husband was kind of boxed in through the judge as part of the divorce proceedings. But so anyway, my point is, is that it can be mutual, that both the agent maybe also want to break a contract but may not take the initiative to do so. So just keep that in mind that again, it takes two to tango, right? All right. Number 5, follow the contractual procedures. If the realtor agrees to terminate the contract, follow any procedures outlined in that agreement for formalizing the termination. This may include signing a termination agreement. Remember, I mentioned the Easy Exit Guarantee. In that case, outlined in my Easy Exit Guarantee is all that my clients have to do is send an email or a text, or they have to put it in writing in some way because all things with the real estate contracts need to be in writing. That's just a principle to live by. Verbal agreements really don't hold any water. But so you want to again go back to the agreement, go back to what's written down in that contract. If it says anything about how to break the contract or break free of one another. All right. Number 6, seek legal advice. You really don't want to go here. I mean, you don't enter into this not to spend money on attorneys or legal fees. So it's really important to address it upfront. But if you find yourself in this bind, and you're not getting good cooperation with the agent, then you may need to seek legal advice. If the realtor disputes the termination or if you encounter difficulties in terminating the contract, consider seeking legal advice from a qualified real estate attorney. They can review your contract, provide guidance on your rights and obligations, and assist you in resolving any disputes. Okay. Number 7. Notify the brokerage firm. So if you're dealing with an agent who doesn't own their own brokerage— I happen to be the owner broker of Net Real Estate and I'm a realtor, but most real estate agents are not owners of the brokerage— so you can contact the brokerage firm directly, the managing realtor of the office. You know, most agents have what's akin to kind of like a supervisor. Contact them and notify them in writing of your decision to terminate the contract. Request confirmation of the termination and ensure that all parties are aware of the change in representation. And I would do this actually before seeking legal advice. I would only spend the money on an attorney if the brokerage is giving you blowback for wanting to break free. Most brokerages do not want the stain of, you know, with social media and just the ability, the power that clients have to get out and spread bad news about, about an agent or a brokerage. Most brokerages, if you want to break the contract, they'll work with you and maybe try to help you find another agent within the same brokerage to work with. And if it's just about that particular agent's performance rather than a reflection of the entire brokerage, that in most cases will fix the issue because there are a ton of agents out there, and within most brokerages there are dozens of agents. And so there will be a good match for you. Okay. Number 8, find a new realtor. Once the contract is terminated, you're free to seek representation from a different realtor who better meets your needs and expectations. Take the time to research and interview potential candidates to ensure a good fit. And of course, review that contract before signing. Remember to act professionally and respectfully throughout the termination process, even if you're dissatisfied with the realtor's performance. Effective communication and adherence to contractual procedures can facilitate a smooth termination and transition to a new realtor. So there you go. That's how you would be able to break an agreement with a realtor who's not living up to your expectations. Another specific question about real estate answered here. Please subscribe to my channel, leave me a comment, and if you have a question, a specific question about real estate, send it to me and I'll answer it directly in response directly to you. Or I might even create a YouTube video specifically to answer your specific questions. Thanks so much. I'm Sander Scott, your full-service realtor.