Can I Cancel a Real Estate Contract with a Realtor for non performance?

Question

Question: I have a six-month contract with a realtor who has done absolutely nothing for me in finding a potential home for three months already. I am getting married soon and I need to find a home immediately. I would like to find another realtor. Is there any way to have this contract cancelled? Would I need a lawyer?

Answer: The first thing you need to do is contact the Real Estate Broker. Every real estate agent is required to work for a licensed broker. Express to them that you are not satisfied with the service you received from their agent. Often times, the broker may be able to assign another agent who will do a better job. If that doesn't get the results you desire, the next thing to do is terminate your contract.

When you are a buyer, there is a good chance that you signed a "Buyer's Agency Agreement" or a similar type contract. These contracts typically protect both parties. The agent promises to find the buyer a home, and the buyer promises to buy a home that the agent shows them. You cannot cut the agent out of the deal if you like the home and wish to purchase it directly from the seller.

Each state governs the real estate laws for their respective areas. In some states, you can terminate the agreement by giving a written notice to the agent. Another option is to request that your agent give you a form called "Termination of Buyer Agency". This will cancel all oral and written agency agreements. If your agent is still unwilling to let you out of the contract, examine it closely. Does the agreement state that you cannot cancel before the contract is up without penalties? What about realtor compensation upon cancellation?

You may want to seek legal advice if it looks like you're stuck with this contract for the next three months. Be sure to let the broker know that you will be doing so. You may find that the broker is more than willing to cancel the contract rather than risk a legal fight.

Additional Resources:

Answered by Linda Adams

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