An exclusive agency agreement is a contract between a property owner and a real estate agency that gives the agency the exclusive right to market and sell the property for a specified period of time. In some cases, an exclusive agency agreement may also give the agency the exclusive right to rent the property.
As the owner, you are free to cancel the agreement at any time. However, there may be consequences, such as paying termination fees. It's important to carefully review your agreement before taking any action. This blog post will provide you with some tips on how to cancel your exclusive agency agreement with a real estate agency.
But before you proceed with the cancellation, let's look at what an exclusive contract is.
What is an exclusivity contract with a real estate agency?
Exclusivity agreements are common in the real estate industry.
An exclusivity contract is a written agreement between the owner of a property and a real estate agency. This type of contract stipulates that the owner agrees not to sell the property on his own and to work exclusively with the real estate agency for a certain period of time.
In return, the agency agrees to do everything possible to sell the owner's property.
Exclusive contracts are common in the real estate industry. They can be concluded for a fixed or indefinite period of time. The typical duration of an exclusive contract is six months, but it can be up to one year.
This type of contract does not exclude property management fees if the property you are selling was previously occupied by a tenant.
The advantages of an exclusive contract with a real estate agency are the following:
You will benefit from the know-how and experience of real estate professionals;
The agency will take care of all the administrative and legal formalities related to the sale;
The agency will have a large network of contacts who can help you find a buyer quickly;
The agency will take care of the promotion of your property on different marketing channels, which will save you time and effort;
The agency will be motivated to sell your property at the highest possible price, as it will receive a higher commission if the sale is made at a high price.
The disadvantages of an exclusive contract with a real estate agency are as follows:
You will be contractually bound to the agency for the period stipulated in the contract; if you wish to terminate the contract before the end of the agreed period, you will have to pay penalties;
If your property does not sell during the term of the contract, you will not be able to sell it on your own;
By signing an exclusivity contract, you accept that the agency can decide on the sale price of your property without your prior agreement;
If you are using the services of a real estate agency for the first time, you may not be completely satisfied with the services provided and it will be difficult for you to terminate the contract without paying penalties.
The advantages and disadvantages of exclusive contracts should be weighed carefully before entering into such an agreement with a real estate agency. If you own a property and are considering using an agency to find a buyer, seek the advice of a real estate professional so that they can direct you to the best option for your particular situation.
You should know that it is still possible to cancel your exclusive contract with your real estate agency.
When should you cancel your exclusive contract with your real estate agency?
You may have decided to sell your property and realized that several real estate agencies are ready to fight for the right to sell it. Here are the 4 best reasons to cancel your exclusive contract with your real estate agency.
1. Your agency is not generating many visits.
2. The visits you receive are not qualified.
3. Your agency does not communicate with you enough.
4. Your agency does not respect the terms agreed upon.
If you are not satisfied with the way your real estate agency is handling the sale of your property, it is perfectly acceptable to terminate the exclusivity contract and move to another agency. Just make sure you do it correctly so you don't waste time and money.
One last bonus reason: you've finally decided to put your property up for rent.
3 tips for cancelling your exclusive agency contract with a real estate agency
As with any contract, it is possible to cancel an exclusive contract with your real estate agency. However, you have to make sure you follow the rules. Here are 3 tips to help you do things in the right order.
1. Review your contract
Before you take any action, it's important to carefully review your contract. Pay attention to the termination clauses and make sure you understand them. In most cases, you will need to give written notice of your intention to terminate the agreement. The notice period can vary from 7 days to 3 months, depending on the terms of your contract.
2. Giving Written Notice
If your contract requires you to give written notice of your intent to terminate the agreement, be sure to do so properly and in a timely manner. The notice should be sent by registered mail or courier so that you have proof of delivery.
3. Pay the termination fee
In some cases, there may be a termination fee associated with the cancellation of your contract. This fee can range from 1% to 3% of the total contract value, depending on the terms of your agreement. Make sure you are prepared to pay any applicable fees before taking any action.
Cancelling an exclusive representation contract can be a complex process. It is important to carefully review your contract and be prepared for any possible consequences before taking any action. If you have any questions about canceling your contract, we recommend that you consult with an experienced attorney.
An exclusivity contract is an agreement between a property owner and a real estate agency that stipulates that the agency will have the exclusive right to sell the property for a certain stipulated period of time (usually six to twelve months). If you wish to terminate the agreement before it expires, you will need to send a formal letter to the real estate agency, which will then be held responsible for the commissions associated with the sale of the property. Otherwise, have you thought about rental investment?