How To Break A Buyer's Representation Agreement
Q: How do I break my buyer's representation agreement (BRA)?
A: The quickest answer? Don't sign one! Haha.
Seriously, though, I get a few calls every month from an unhappy buyer who signed a BRA in DFW. They feel like they signed some strong, legally binding document that will blacken their soul if they even think about breaking it.
The truth is that it is very easy to break (terminate) a BRA. First, read the document and it should contain language about how to terminate the agreement. It could be very simple and easy to follow. But if not, then...
Plan B: call your agent and explain to them how unhappy you are with their services, cite a few examples (3 or more is good) of what you are unhappy about with their performance, and if they refuse then call the broker. If the broker also refuses, then contact their local real estate commission or even the NAR.
If you ever need more specific advice on this, call another agent from another brokerage and explain your situation. particularly if they are from a rival brokerage, they will be happy to talk you through it.
I prefer to be a little more specific. In Texas you can fire your Buyer's Rep using a form from the Texas Association of Realtors (TAR 1503). You can find a copy here...
Most states have something similar. Just Google "Termination of Buyer Representation" and your state.
I do speak a bit plain, to reach a broader audience. The details can be a bit complicated, and what this situation will lead to is a negotiation. The broker may want a fee/commission. Therefore:
I think it is better to talk with the agent first. Tell them why you feel like you aren't being served. Then ask for a written release and termination of the agreement. Arm yourself with some TREC/NAR threats. And lastly, use an agent from another brokerage to explain it if it comes to that.
As you can see, the broker has to sign off on the termination agreement. I am not sure if writing "0" in C (1) and faxing it to the broker, with no communication, will be very effective. Then again I am not sure what your experience is on this.
Yeah...somehow I expect that most people would have already expressed their frustration &/or displeasure, prior to getting to the point of terminating the relationship.
My advice...never sign an exclusive right to represent for a buyer's agent. At least in Texas, you give up your right to independently negotiate with ANY seller - even those with off-market properties - within the specified market and duration of the contract. If you purchase a property from someone else, the Broker/Agent you signed the representation contract with can require you to pay them a commission, even if they had nothing to do with locating or negotiating for the property.
Find yourself a women's libber - they burned bras back in the day :)
Well that explains it.
Not sure how that text message is related to your original post, but if you're advising people to write their offers as cash when they're using hard money, you're mis-advising them. Hard money is a loan, not cash.
The form requires a broker's signature. The broker is refusing to sign or voluntarily release the buyer from the BRA. Are there any other ways to break the BRA?
Greg,
How sad it is that your post has been here over a year and no one has commented on it.
Your answer is flawed endlessly. The TAR Residential Buyer/Tenant Representation Agreement, aka Buyer Broker Agreement (BBA) has been in force through three decades and is fully enforceable under Texas law.
My following comments are my opinion based on years of practice and do not constitute legal advice. One should seek legal advice when making a decision to enter into a contract of any kind.
Any serious buyer should carefully select an agent to represent their own best interest. Texas is NOT a "Transaction" state and therefore all licensees must represent either the buyer or the seller. If you want to have representation and have your agent keep your confidential information confidential, then you must have an agent represent you. Otherwise the agent represents the owner.
Entering into a BBA contract is serious, but essential in having proper representation. Research agents carefully to see if they have the proper training and experience to represent your needs. Some of an agents education and years in the business can be found on the state licensing site: www.trec.state.tx.us/ The Texas Real Estate Commission: (aka TREC)
Anyone telling you to "Break" or "Terminate" a legally binding contract is careless and should not be giving advice without first advising you to seek a legal opinion to see if you have a binding contract. There are ways to properly terminate such a contract and Greg's Plan B answer has some merit to it. In my opinion it is always better to negotiate yourself out of an agreement or contract rather than litigate or worse yet, ignore it. Seldom is there only one side to blame for a bad working relationship. Consider what the agent has done for you and how you have responded. Have they earnestly tried to accommodate you or not. The BBA says the Broker's (aka: agent) obligation to you is to "(a) use Broker's best efforts to assist Client in acquiring property in the market area; (b) assist Client in negotiating the acquisition of property in the market area; and (c) comply with other provisions of this agreement." If they have done that then they have not violated the agreement. In that case you should seek a reasonable termination of the agreement recognizing that the agent may have expended a good deal of time working for you. All agreements (contracts) with an agent in Texas go through the Broker. If an agent is a Broker then he can terminate it, but if he is not you need his Broker to terminate the BBA. It has been my experience that most agents and brokers want happy clients and will not hold you to a BBA, but in some cases the public will misuse an agent and usurp much of his or her time and want to terminate for little or no reason and may have complete disregard for the agent's efforts. Is such a case the agent and/or broker may not be willing to just walk away from it.
In any case of termination, you the consumer must have a signed document by the maker of the Agreement and Broker of the company, acknowledging that they are voiding the BBA. To terminate the BBA does not invalidate its enforceability completely. If you purchase a property during the protection period (paragraph 11G) that the Broker introduced to you and then sent you notice after the termination date (new termination date in the case of terminating it), then you still owe the Broker the agreed to commission. This provision is so that a buyer will not utilize the services of an agent/broker to find the property they want and then dismiss the agent and purchase the property on their own without the agent and try to negotiate a better deal since the agent is out or even worse, substituting in an agent who has done none of the work.
The only termination language in the BBA is when the period of time it covers is complete or in paragraph 13: Default. If an agent/broker fails to comply with the agreement or makes false representations in the agreement then the buyer may exercise any remedy at law.
Caution; Be careful whose advice you take. Check out their credentials to see if they have the knowledge and experience to be giving such advice and always check more than one source. Legal advice can only be given by an attorney so avoid taking advice of just anyone.
Mark Minchew, Broker
I don't use BRAs as an agent. My business comes from referrals and value added features of my service. I personally feel those who have to use, and try and enforce them are doing a disservice to their clients. Give them a reason to use you, and they won't have to be bound to do it.
The link to the TAR form doesn't work anymore. Does anyone have a current working link to the TAR 1503 form?