A good real estate agent is the ultimate advantage when a big move is in the picture. It doesn’t matter whether you are buying a home or selling; you will get the best results when you have an expert negotiator to advocate for you at every turn. It gets tricky, however, when a particular Realtor® isn’t working out. Then the question becomes, can you fire your real estate agent?
This is a subject that many Realtors® don’t like talking about. It’s not necessarily that they don’t want to cooperate. The truth is that they are not allowed to encourage a client to cancel a contract with another Realtor®. For that reason, please consider this post for information purposes only, not as legal advice or to solicit business from someone already working with an agent.
That said, what happens when one or both parties want out of the agreement? In this post, we’ll talk about how to cancel a contract with a real estate agent in Ontario.
Do you want a seamless and straightforward home-buying process? One of our detailed buying guides will help!
Listing Agreements and Buyer Representation Agreements
A Buyer Representation Agreement (BRA) is a contract between a client and a real estate agent when buying property. A Listing Agreement is the opposite — it’s the contract between the seller and the agent who is representing the sale.
Both agreements are legally binding documents. Each outlines standard terms and includes the duration of the service, complete with a commencement and expiry date. A holdover period may entitle the agent to compensation if a buyer they introduced to the property makes an offer within 90 days.
Once the expiration and holdover dates pass, the contract automatically becomes null and void. Dissolving it before then is where things can get more complicated. Both parties have to agree to terminate the contract unless a cancellation clause was negotiated in advance.
Searching for the right home in Guelph or the Tri-Cities? Start here by browsing our featured listings.
Communication Is Key
Before you try to get out of your relationship, talk to your Realtor®. Remember that communication is the key to any successful partnership. Our team always asks clients to let us know if there is anything they are unhappy with. We interpret this as a way to improve, and not as a criticism. Most issues can easily be remedied once understood!
What if you and your Realtor® can’t work things out? Most agreements are with the brokerage and not the individual Realtor®. A broker-owner will often be able to remedy the situation simply by reassigning the client to another Realtor® within their company. Or, as an alternative, they could just give you a cancellation, which releases you from the contract and allows you to select another Realtor®.
Looking for more tips to streamline your home-buying experience? The posts below will help you make a successful purchase:
- What is the Importance of a Final Walk-Through?
- New Build Vs Resale Home: What’s Better in Today’s Market?
- Should I Buy a House for University Instead of Renting?
If I Sign a Contract With a Realtor®, Can I Get Out of It?
“Can I fire my real estate agent?” aren’t words most professionals want to hear, but it comes up once in a while. As always, the best remedy is prevention. Whether or not an agreement has a cancellation clause should be high on your list of questions to ask a Realtor® before signing a contract.
On a more serious note, if you believe that your real estate agent or the brokerage is in breach of contract, you can pursue legal action. However, this isn’t just costly — it can also be time-consuming. In many cases, it may be better to simply let the contract expire.
It’s also important to note that signing a contract with a brokerage is not the same as placing or accepting an offer. It obligates you to work with that particular real estate agent to buy or sell a house. But it doesn’t mean you are compelled to complete the transaction.
You can still change your mind about the move before you commit to a buyer or a property. Once you sign an Agreement of Purchase and Sale (APS), the deal becomes binding and official.
Can I Change My Realtor® After Signing a Contract?
What if you want to continue to work with a Realtor®, just not the one that you signed up with originally? Since the contract is often with the brokerage and not the agent, it usually isn’t a problem to switch representation within the same organization.
Are you ready to list your home? The related reading below will help to set you up for success:
- When Is The Best Time To Sell A House?
- What Are the Best Ways to Increase Your Home’s Value?
- Home Inspections: Friend or Foe When Selling Your Home?
What Is a Mutual Release in Real Estate?
A mutual release happens when you and your agent both agree to cancel the contract. Generally speaking, it is the best path to the cancellation of a Listing Agreement in Ontario. Each of you signs a written document to void the contract.
Barring any holdover period, you are now free to sign with a different agent at the same brokerage or choose a new company altogether. Alternatively, you can even cancel your listing and take your home off the market. If you’re the buyer, you can put your house hunt on hold indefinitely.
The GoWylde Team Advantage
Working with the GoWylde Team means you never have to worry about being locked into an agreement. We have always been committed to a higher level of service, which speaks for itself.
As such, all of our agreements come with a cancellation clause. If you are not satisfied for any reason, just let us know. We will work together to fix it, or else you are free to move on. This is yet another advantage we bring to the table. We want to have happy, lifelong clients who enjoy working with us!
Do you want to know more about buying or selling a home in Guelph or the Tri-Cities? Our top Guelph real estate agents are happy to help. Reach out today at info@gowylde.ca or call 519-826-7109 to take the next step.
