Listing agreements can differ from one to another. The real differences lie on the clauses and sections of the contract. It is important to carefully read the agreement before signing it. Being knowledgeable on what it states is your best weapon against any possible problems you might face when you decide to cancel.
What exactly happens when you cancel a listing agreement? Here are some possibilities.
- You might have to pay for cancellation fees. These fees are involved when the seller cancels the listing agreement. It is usually stated in the cancellation section of the agreement. This instance, unless otherwise stated, makes the seller responsible for such fees. But there are also cases when both the agent and the seller agrees with the termination of listing agreement without any fees involved.
- You might have to pay for marketing expenses incurred. When the agreement is in effect, your agent will make sure that every step is taken to make you satisfied. These usually include marketing efforts like printing of brochures and fliers. These efforts have equivalent amount of money at the expense of your agent. See to it that this is clear in the agreement contract.
- You need to forward a letter expressing your intent to cancel the contract. As formal courtesy, you have to express the cancellation in writing. You need to address this to your agent stating your name, address, and the names of the parties mentioned in agreement. Attach the original contract as an addendum to the letter.
- You might need to contact your agent's broker. Usually, the listing cancellation can be settled with the agent. But there are times when some agents will make it difficult for the cancellation to push through. This is when you will need to talk to the broker telling of the cancellation and that you want your house be removed from their listings.
- You decide how you will let other people know that you are selling your house. After the cancellation, your house will then be removed from listings. It is during this time that you will have to decide whether you are listing with another agent or broker or whether you are performing a DIY sale of your house.
Listing agreements are formal documents that bind you with an agent for a specified period. Though it is binding, it does not mean it is forever. If you have read your agreement carefully, the duration is stated there. Should you not agree with it, you can always ask for shorter time frames.
If you have other questions regarding listing agreements, how it is done, and other information which may include extension or termination, let your agent know about them.