If you want to sell your home and choose to hire a real estate agent, you’ll sign a listing agreement. This bilateral contract between you and your real estate broker or agent dictates that you will pay them a commission if they sell your home within a certain timeframe.
A listing agreement is a binding contract, but there are a number of ways to get out of one. Whether you change your mind about selling, have ethical or performance concerns about the agent, or you just don’t find a buyer, you can get out of a listing agreement. But before you sign one, you should understand your options for terminating a listing agreement so you don’t feel stuck in a bad situation.
Most listing agreements are structured to give the agent or brokerage the exclusive right to represent your home sale. They usually come in types:
Listing agreements are typically written to expire after a certain amount of time, usually 60 - 180 days. They’ll also include details on early cancellation, which may require you to pay a cancellation fee. Always remember to read a listing agreement completely to understand exactly how long it lasts, what constitutes cause to cancel the agreement, and if you’ll have to pay a fee to end the contract early.
While most agreements expire after a set time period, you may not want to wait that long without a buyer. (Especially if you’re motivated to sell!) Again, you should always read your listing agreement before signing because each may have different language explaining grounds for cancellation or mandating fees for early cancellation. That said, the most common reasons for being able to terminate a listing agreement with cause include:
It’s much easier to terminate a listing agreement early on in the process than after it’s been active for weeks or months. Agents and brokers likely won’t put up too much of a fight if they haven’t done much work yet, but if they feel they’ve put a lot of time and effort into trying to sell your home only for you to attempt to back out, expect them to fight early termination.
If you attempt to cancel a contract to move to an agent who charges less commission or sell to a family member or friend to avoid paying commission at all, it will be very difficult to get out of your contract.
To terminate an already signed listing agreement, follow these steps.
If you’re feeling dissatisfied with your real estate agent or brokerage, before you do anything, look at your contract. It should have a section describing what constitutes a valid cancellation and if you’ll have to pay a fee.
Bear in mind that in an exclusive right-to-sell agreement, even after canceling, you may still legally owe the agent a commission if you sell to a buyer you found yourself. In an exclusive agency contract, you can avoid paying commission if you find a buyer yourself, but you cannot hire another agent to find a buyer.
When you find a reason for cancellation based on your contract, it’s time to contact your agent. Finding a new agent could be a hassle, so it’s best to give your agent or brokerage an opportunity to set things right. Put your experience in writing, explaining what you’re unhappy about and what, specifically, you feel justifies cancellation. An email works well.
Being civil, professional, and transparent about your discontent can wake an agent up to start working harder for you, or can make it more likely for them to let you out of the contract. You can either ask for reassignment to another agent within the same brokerage, or ask out completely.
An agent is much more likely to let you out of a listing agreement if you agree to pay any costs they incurred in marketing or showing your home. If you must pay a cancellation fee, pay that without a fuss, and move on.
If an agent or brokerage refuses to cancel the listing agreement, it’s time to hire a lawyer. This can be risky since a lawyer will cost money too, and if an agent or brokerage is determined to play hardball, the conflict could escalate. If you’re very determined to get out of your agreement early and feel you have cause to do so, a lawyer can help with resistant agents or brokerages. If you’re not absolutely convinced you have cause for cancellation, it may be a better option to simply wait it out.
When you list with Orchard, we’ll get your home show-ready and make repairs to increase your home’s value at no upfront cost.
Orchard guarantees your home will sell, so you can buy your next one worry-free.
On top of Orchard’s Home Sale Guarantee, we list, prep, and show your old home after you’re all moved out.
Use our home sale calculator to estimate your net proceeds.
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