Wednesday, December 9, 2015

What happens if I cancel my listing?



The withdrawal-from-sale clause entitles the broker to a full listing fee when, during the listing period, your conduct causes the property to be:

       • withdrawn from the market; 
       • transferred to others; 
       • further leased without the broker’s consent; or 
       • made unmarketable. 

Separately, the termination-of-agency clause entitles the broker to collect a full listing fee when you cancel the agent’s employment during the listing period. The broker has earned a fee on termination regardless of whether you intend to continue marketing the property for sale using other sources. 

You are obligated to pay the broker the fee agreed to in the employment agreement as earned when:  
        
       • the agent at all times exercised diligence in marketing the
          property; and
       • you exercise your right under the withdrawal from-sale clause
          to voluntarily remove the property from the marketplace 
          during the listing period. 

The fee due the broker on your withdrawal from the market is a fair amount due the broker and their agent, not a windfall. The agreed amount preserves the earnings the agent expected to receive on the sale of the property. By acting to market the property and locate a buyer when entering into the listing agreement, the broker and their agent carried out the performance of their due diligence obligations owed to you to locate a buyer. 

On withdrawal, the fee due the broker compensates them for their lost opportunity — the authority to market the property and locate a buyer in exchange for a fee. Further, the fee due the broker compensates them for the time, effort and money invested into marketing the property before the property is removed from the market.

(Note):  
Realistically, if you are in an antagonistic relationship with your broker, most would be glad to see you leave.  Contractually, though, you could still be on the hook for the commission.  Best to try to work something out. 

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