Signing a contract with a real estate agent is an important step when it comes to buying and selling a home. It formalizes your working relationships, outlines expectations, and gives them the right to represent you. But what if you’re not happy with your agent? Can I return from a contract with a real estate agent? Redfin categorizes what you need to know to navigate this tricky situation.
If I sign a contract with a real estate agent, can I get out of it?
In short, whether you can get out of a real estate agent contract depends on the terms of the contract. Most contracts include termination clauses that outline options if you are not satisfied with the agent’s performance. The job of an agent is to defend you in the process of buying and selling your home. If you don’t think they’re doing their job effectively, you should consider making changes.
Most real estate contracts have clauses that outline the process of terminating the contract early. Depending on the terms, this may include a notice period (such as 30 days) or a cancellation fee. Termination clauses can vary widely between agents and brokerages, so understand the terminology before signing.
When working with Redfin agents, transparency is always at the core of the process. Redfin Agent offers a clear agreement that outlines service expectations, fee rates, and contract duration. Depending on the terms of the contract negotiation, you may be able to terminate your real estate agent contract at any time, but it is important to review your contract carefully.
Why you want to back out of contracts with real estate agents?
There are several reasons why you might consider retreating from contracting with an agent.
Lack of communication: If your agent is not responding promptly to a call, email, or text, you may be ignored and question your commitment to your needs. Degraded Performance: Whether they are not delivering the results you are expecting, or whether their marketing strategies are not effective in making your home aware, performance issues can lead to frustration. Changes in situations: Sometimes life changes, such as a job transfer, a family emergency, or a change in your financial situation, can lead to a pause in your estate plan. Conflict of Interest: If an agent finds out there is a conflict of interest, such as expressing both the buyer and the seller without proper disclosure, you may wish to end the relationship.
How to get out of a contract with a real estate agent
If you want to get out of a real estate contract with an agent, here are a few steps:
Express your concern: Try having an open conversation with your agent before jumping straight to the end. They may be able to address your concerns and adjust their approach. Request an early release: If you determine that backout is the best option, you will approach the agent directly and request early termination of your contract. Some agents may release you from the contract without penalty if they feel the relationship is not working. Confirming Termination Clauses: If your agent is not willing to voluntarily release you from the contract, please check the Termination Clauses of the contract. This will tell you what steps you need to follow and what you owe no matter what fees you have. Consult with your broker: If your agent is part of a larger broker, contact your broker to explain your concerns. In some cases, the broker can assign a new agent within the same company or simply allow the contract to be fully terminated.
Understanding Real Estate Agent Contracts
If you agree to work with a real estate agent, you usually have signed either a buyer’s agent agreement or a listing agreement if you are selling the home. These contracts establish the responsibility of the agent, outline the committee details, and define the length of the contract.
It is important to read the terminology carefully and ask questions about things that are unclear before signing anything. Most contracts include details on how to terminate the contract, including penalties and conditions.
