Can I back out of a contract with RE agent?

Question

Hey guys,

My real estate agents wants to sign a one year contract for sale. (I am thinking of selling my property in Pensilvania)

I do not want to be tied up by the contract for so long. The RE agent says I can back out any time.

Is that true?

Lets say I change my mind and wont want to sell it anymore, lets say I will decide to rent it out couple of months later, can I back out of a contract that I signed with the brokerage firm/RE agent?

Josh Caldwell · Answer

For starters, I wouldn't sign one longer than 6 months. If he cant sell it in 6 months, he just cant sell it. Secondly, you need to read the contract. Most listing agreements have a provision for cancelling a contract, and that usually involves sending a letter to the broker via certified mail. Lastly, why not post it here and see if an investor wants to buy it first? Heck, if it is in my area, I might want to buy it.

John Knisely · Answer

Agreed with Josh and Bob. If they aren't confident that they can sell your house in <1 year then there is a conversation to be had on price and marketing plan as well. Of course depends on property type and average marketing time/DOM for that asset class and location (land usually takes longer to sell for example).

Definitely don't enter a contract until being clear on that.

Bob Norris · Answer

Why even go there? Many agents would be happy to sign a sales agreement for a shorter duration. Let your current agent know what time you are willing to list for, and if they won't do it, move to an agent that will.

Wayne Brooks · Answer

Read your listing agreement.....make sure language that you can cancel is in there.

Account Closed · Answer

I just read a real estate agent agreement in AZ that says that if I back out anytime within 6 months, I owe the complete commission anyway. Obviously, I didn't sign that.Click Image to enlarge:

Mary Jay · Answer

Thank you guys so much for your help!

Alex Deacon · Answer

@Mary Jay let your agent know you will sign a listing contract for one year but you want specific language that it can be cancelled at any time with no stipulations. On our contracts provided by the local MLS board they are for one year with an OUT clause. That clause can be set at 1 day or 365 days. You want to choose the 1 day option. Therefore the contract is cancel able by you at any time with no commission owed to that agent or agency.

Chris K. · Answer

@Mary Jay

It's generally a bad idea to just cross off a contract. Having initials from both sides may help. But I've seen cases litigated over whether the party initialing the contract had the authority to do so. The best practice is to sign an agreement that matches the understanding from both sides.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

John Knisely · Answer

@Mary Jay I would discuss with the agent that you are concerned with this clause. Start with a shorter listing duration. Trust and communication is critical when listing and selling a property.

Mary Jay · Answer

Let’s say her own form from her brokerage says that I cannot break the contract for six months or one year or whatever. Can I cross it off and initial? Would that be acceptable in court? If it gets to court.

Can I back out of a contract with RE agent?

Can I back out of a contract with RE agent?

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