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How to Get Out of a Listing Agreement

Contributor
By Andrea Townsley
eHow Contributing Writer
(0 Ratings)

Selling your home is serious business, and you want the best real estate agent or broker to help you. This person lists your home on the multiple listing service and markets your home to buyers and other agents and brokers. There are several different approaches to take if, for some reason, you need to get out of your listing agreement. The listing agreement is a binding contract.

Difficulty: Moderate
Instructions

Things You'll Need:

  • Listing agreement contract
  • Computer with printer
  1. Step 1

    Read your listing agreement carefully. You should know what rights the agreement affords you. Look for any escape clauses or termination clauses. See if you they apply to your situation and if you can take advantage of them.

  2. Step 2

    Review the section of the listing agreement regarding the duties of the broker or agent. If he has violated any of the duties outlined, you are entitled to get out of the listing agreement. Examples of these duties include marketing the house, doing open houses and taking out ads, entering into proper negotiations with buyers and properly putting the home under contract.

  3. Step 3

    Evaluate whether your agent is fulfilling her fiduciary duty. This means that it is her duty to represent you and only you, and not any other parties that may be involved. Your agent or broker's job is to look out for your best interests, and if you have reason to believe this is not the case, you have the right to terminate the listing agreement. If you're unsure of your rights, contact your real estate attorney.

  4. Step 4

    Check the expiration date on the listing agreement. If it is set to expire soon, you may prefer to let the contract run out instead of trying to get out of it. If the contract has not been breached, this may be your best option.

  5. Step 5

    Draft a letter to your agent and his brokerage. Explain your reasons for terminating the agreement; be specific but keep it brief. You can call or email the agent but make sure to put it in writing and keep a copy for your records. Send the letter with delivery confirmation. After you have successfully gotten out of your listing agreement, report any unethical behavior to your state's real estate licensing board, if applicable.

Tips & Warnings
  • Try talking to your agent or broker and tell him why you believe he is not performing up to par. This could be all he needs to improve things. If you're canceling your listing agreement because you changed your mind about selling, your agent or broker should allow you to get out of the agreement.
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