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Complete Guide: How to Write a Real Estate Mandate Cancellation Letter

Updated: May 13

You have embarked on a short or long term rental investment. Nevertheless, you wish to terminate your real estate mandate and you are looking for a template letter. In such a context, it is preferable to do things the right way to avoid any dispute. But you should know that the letter of termination of a real estate contract is done according to a precise framework.

Representing the process of terminating a real estate mandate
Terminating a Real Estate Mandate: Follow the Right Framework.

The right way to terminate a non-exclusive sales mandate

If you are looking for a template for terminating a non-exclusive sales mandate, it is important to understand what this means. In other words, you have mandated a real estate agent to sell your property. However, you have kept a total freedom on your side and if you find a buyer, you can perfectly engage with him.

Representing the process of terminating a real estate agent's contract
Understanding Non-Exclusive Sales Mandate: A Guide to Termination.

Property management termination vs rent payments

So, if you did not need the real estate agency to find a buyer, you are looking for a sample letter of termination of real estate agency contract. This saves you from paying them commissions or penalties. Nevertheless, it is important to look at the different clauses of your contract, because sometimes there are very specific conditions that must be respected.

Representing the process of terminating an agreement with a real estate agency
Sample Letter of Termination for Real Estate Agency Contract.

You and your property manager agreement | Property management law firm

Once you have found the potential buyer, it is important to inform the real estate agency as soon as possible. Generally, you must inform them after the signature of the preliminary contract, in other words the compromise of sale. A receipt must be sent by registered mail with acknowledgement of receipt. In this letter, you send him the letter of termination of the simple mandate with the proof of the preliminary sales agreement.

In this letter, do not forget to indicate the name and address of the future buyer. Also establish the agreed sale price and possibly the contact details of the notary responsible for the sale.

Informing the real estate agency about finding a potential buyer and terminating the contract
Letter of Termination for Real Estate Agency Contract - Informing Agency of Found Buyer.

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Pay fees

Thanks to the different information you provide, you will be able to terminate your contract with the real estate agency. This is a way to prove that you are not responsible for paying any commission. But don't be surprised if the real estate agent does some checking to make sure that the buyer has not been in contact with the agency. If the buyer has not been in contact with the agency, you must pay the agency a commission, especially if the real estate agent has a visit slip with the buyer's name on it.

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Symbolizing the need to carefully review the contract and ensure compliance
Ensuring Compliance with Real Estate Agency Contract Termination.

Send your cancellation letter to the Immo agency as soon as possible

If you are negligent in not notifying your real estate agency as soon as possible, the situation may turn against you. Therefore, once the promise to sell has been drawn up or the compromis de vente has been signed, send your letter of cancellation of the sale mandate immediately.

Representing the importance of promptly sending the cancellation letter to the real estate agency
Promptly Sending Cancellation Letter After Signing Compromis de Vente.

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Termination notice

It is important to understand that if you do not do this, the real estate agent will continue to find a potential buyer. If he finds a person likely to buy your property with a price higher or equal to the one already negotiated, you will be obliged to pay the commission. It is an amount that amounts to several thousands or tens of thousands of euros, so do not waste any time and send your letter of termination of search mandate as soon as possible. This will save you a lot of trouble, especially since you will have to take this step one way or another. So rather than putting it off until tomorrow, focus on sending it.

Illustrating the importance of acting promptly to save thousands of euros by terminating the search mandate
Urgent Action Needed - Send Termination Letter to Avoid Commission Payments.

Right notice period | Termination notice

When should a simple sales mandate be terminated?

You should know that all sales mandates are concluded according to the provisions of the Hoguet law of 1970. To reinforce this framework, a decree of 1972 was put in place. This implies that any sales mandate that is established must be carried out within a limited period of time. This is a way to more easily frame the scope of the simple sales mandate and for the owner it is an opportunity to terminate his contract according to previously defined deadlines.

Therefore, an irrevocable term of a few months is automatically put in place when you sign a simple sales mandate. Moreover, this date must imperatively be stipulated in the contract. As a rule, it is set at three months. However, you can negotiate this period to be shorter or longer.

Signifying the reinforcement of regulations for sales mandates
Understanding the Hoguet Law of 1970 for Sales Mandates.

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Management company period of notice

When the period of irrevocability expires, you are within your rights to terminate the simple sales contract. If you do nothing, a tacit renewal will take place in one-month increments. Again, it is imperative that the renewal period be stipulated in the contract.

Keep in mind that when you are in the renewal period or in the initial three-month period, a notice must systematically be sent within 15 days before the termination. This notice is sent before the expiration date and you must directly send a termination letter before the end of your simple mandate contract.

Indicating the end of the irrevocability period in a sales mandate
Expiry of Irrevocability Period in Sales Mandate.

How to terminate a sales mandate by using the legal withdrawal period?

To cancel your simple sales mandate, there is another solution by using the legal withdrawal period. Indeed, you have just signed your sales contract. According to article 1122 of the Civil Code, you are within your rights to retract as you wish. It is a certain freedom which is then granted to the owner to take the time of reflection. Without any reason, you can perfectly well go back on your commitment and the real estate agency will not be able to contest this step.

Symbolizing the freedom to take time for reflection before finalizing the sales mandate
Freedom to Reflect on Sales Commitment.

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It should be noted that previously, the withdrawal period was seven days. But since the Hamon law has been extended, you have 14 days to terminate your simple mandate contract. This is a universal device that applies to any type of mandate, even if there is no precision on this subject in the contract.

Please note that the termination is unilateral and, as a bonus, you do not need to present any justification.

Representing the ability to terminate the contract without providing any reasons
Hamon Law and Universal Application.

Property management termination vs management fee

The importance of trusting a real estate agency worthy of the name

With UpperKey, your rental property concerns are quickly put to rest. That's why you can trust the professionals to handle both short-term and long-term rental management. A fully dematerialized agency that will be able to offer you a particularly competitive rate.

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Moreover, UpperKey agency will also be able to provide you with an example of a termination letter if you no longer wish to work with your current agency. This is just one example, because when it comes to rental management support, you will only be working with qualified experts. You will be fully satisfied with the work done, because the management is efficient.

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