So you hired an agent to help you in your search for a home, but now you’re unsatisfied with their performance and feel that they haven’t upheld their end of the bargain. You’ve tried to resolve the issues, but it just isn’t working out.
Parting Ways With Your Agent?
First, determine whether you’ll need to formally terminate your contract (if you signed one) and seek legal counsel if necessary. When you’re ready to find a new agent, HomeLight can connect you with some top-rated candidates in the area and help get your home search back on track.
You know you need to terminate your relationship and move on, but this can be a nerve-wracking decision, especially if you have to write a termination letter and possibly involve a lawyer.
Never fear.
We’re here to help you understand when a buyer’s agent termination letter might be necessary and walk you through the process of writing one. Here’s even better news — Jesse Allen, a top agent in Jeffersonville, Indiana, says that in most situations, “It could be an email, it could be a text message, it could be a certified letter.” And in some cases, your new agent might even take care of terminating the relationship for you.
Firing your agent sounds like a scary prospect, but in reality, it can go pretty smoothly and work out in the best interest of everyone involved. Let’s take a closer look.
James Rhyne, a real estate attorney with Southern Law Group in Charleston, South Carolina, explains that until the buyer, seller, and agent sign the offer, chances are, you can switch agents without much headache. After you sign the offer, if the agent isn’t fulfilling their duties, you may need to write a termination letter to officially end the relationship after you’ve tried to remedy the situation.
Hopefully, you read the agreement carefully before you signed it and know the terms of termination. If not, now is the time to really dig in and read the language of the contract.
Here’s what you’re looking for:
- Length of the contract: How long are you tied to this agent? Two months? Six months? A year?
- Agent responsibilities: What responsibilities did the agent agree to, and are they fulfilling them?
- Grounds for termination: Are there actions listed in the agreement that are automatic grounds for termination?
- Manner of termination: Does the contract include specific language about how to terminate the agreement?
- Financial ramifications: Does the agreement specify a compensation amount for the agent if the contract is terminated?
- Your rights and duties: What are your rights as a buyer? What duties do you have to perform as the buyer, according to your contract?
According to Allen, “Very few agents have someone sign the exclusive right-to-represent contract, which means that the buyer is going to work exclusively with that agent.”
If an agreement is signed, it’s typically between the client and the real estate brokerage the agent is working with. So, if you’re having trouble with one agent, you could work with the brokerage to find a new agent under that same broker.
What is a buyer’s agent termination letter?
A buyer’s agent termination letter is an official letter requesting to terminate a buyer-broker agreement for reasons that could include a breach of contract, unethical conduct, poor communication, or incompatibility.
When should you write an official termination letter?
While a termination letter isn’t necessary in many situations, if you do need to write one, here’s when you should do it:
Breach of contract
Typically, your buyer’s agent will agree to show you homes in a timely fashion, communicate regularly and through your preferred method, and monitor contingency timelines, among many other duties, by signing a contract.
If the agent is in breach of the buyer-broker agreement, meaning they aren’t fulfilling the duties that they agreed to, you may need to write a termination letter so that their breach is recorded and reported to their brokerage.
Unethical behavior
If your agent is behaving in a way that is unethical and violates their profession’s code of conduct, such as discrimination, failure to disclose information, or referral kickbacks (accepting gifts from third-party service providers, such as escrow or title companies), you should write a termination letter.
In the case of unethical behavior or breach of contract, you may not get any pushback from the agent or brokerage if you want to end the relationship. However, writing a termination letter may still be a good choice because it would officially document their behavior. This would be useful if you decide to take legal action later on.
Failure to reach a mutual termination agreement
If you’ve had conversations with your agent and their brokerage about ending the relationship, it’s likely that you’ll be able to come to a mutual termination agreement without needing to write a termination letter. If you can’t, then it’s time to talk with an attorney and write a termination letter that outlines your reasons for terminating the agreement.
Lack of termination form
If your agent or their brokerage doesn’t have a termination form or process to formally end the relationship, you should write a termination letter to have an official record of your reasons for walking away.
Unable to wait for the contract to expire
When a buyer-broker agreement is signed, there is a term length that you are committing to — usually six months, but this could be anywhere between 30 days and one year. If the agent is pushing back on terminating the relationship or if you want to avoid the hassle, Rhyne says, “It’s simpler to just let the time expire.”
If finding a home is time-sensitive or if it’s a hot seller’s market and you need to move quickly, you may not be able to wait it out. In this case, a termination letter may be necessary.
How to write a buyer’s agent termination letter
Read your contract very carefully
If the friction has escalated to a point where a termination letter is necessary, the first step is to read your contract very, very carefully. Look for a termination clause that outlines the conditions or reasons you can terminate the contract. Be sure to include these reasons in your letter.
You should also consider any consequences for terminating the contract early. Examples could include paying a termination fee or still owing the agent a commission on the house you purchase within the contract’s time frame.
Find the portion of the contract that states the agent’s responsibilities to see where they have fallen short and not fulfilled their end of the contract. Take note of these and see if you can find any explicit evidence that they failed to follow the agreement.
Beware of counter-arguments
If the relationship has deteriorated to this point and your agent or broker won’t allow you to end the relationship without an official termination letter, make sure you’re aware of what their counter-arguments could be or the reasons they wouldn’t let you terminate the contract. For instance, they may point out that they’ve shown you a ton of houses and invested a significant amount of time in the process.
Consult with an attorney
Consulting with an attorney, specifically one that specializes in real estate, will help you understand your rights and the consequences of terminating your buyer-broker agreement. Contracts can often be difficult to read, so a lawyer can advise you on what exactly you need to know.
Find a good template to use
Your attorney can help you draft the letter, but you can also find example templates that walk you through how to structure your letter. Here’s what you need to include:
English (US) · 