How to Break a Contract with a Broker

Question

I am in the process of building a home and had listed my realtor as my agent so he could pick up the easy commission. My dad is a licensed and active agent (his broker's license is inactive) but his work is done as a property manager on the leasing and management side.

My realtor is fine with allowing my dad to be listed instead of him because I've done several quick and easy deals with him, but he was not sure if his broker KW would let him out of the contract. Any advice on how to get this done or am I completely at the mercy of KW??

Jeff B. · Answer

GOOD - - he is an associate broker under another's supervision :)

Jeremy Kuchenbecker · Answer

His broker's license is not active but the company he works for is a licensed brokerage. I think he's ran maybe one or two purchases through them in the 15 years he's worked there.

Jeremy Kuchenbecker · Answer

Mike,

I've always used my current realtor on deals and not my dad because he has only acted as an agent on 1 deal and the cost savings in commissions on the houses I've purchased has been small enough to not make a significant difference for his work.

In this case, when building, the commission will be over 10k and he basically just needs to sign some documents, it is definitely worth it. I should have realized I was able to use him from the beginning but he's a 'property manager' in my eyes and it didn't even occur to me he could have listed him - rookie mistake.

Mike H. · Answer

How long is the listing contract for? You could wait it out. If they haven't paid for any marketing for it, I'm not sure why they would want to be difficult about it.

Ultimately you could really make things tough for them so that they waste their marketing money and then the contract eventually expires anyway and you hire your dad instead.

That being said, is there any reason why you signed a listing agreement with them given that you knew your dad was an agent?

Maybe a co-listing agreement would be the most equitable thing here so nobody feels shorted in the process.

Jeff B. · Answer

You've got other long term issues:

•   a PM must be a broker (& active) or working under the supervision of one.

Larry Turowski · Answer

@Jeremy Kuchenbecker Don't let your realtor pass the buck.  Have him go to bat for you to get a formal cancellation of the listing contract.  KW not allowing it and just a convenient way for them to play the heavy while still letting your realtor look like the good guy.  If he can't do this for you maybe you should get a different realtor in the future.