Termination of the contract with the realtor

Today, most transactions with residential real estate are carried out with the participation of professional realtors who search for a buyer and seller, and also provide full support for the transaction. However, it is worth noting the fact that real estate agency services, as a rule, are provided on the basis of a written contract, and entail certain consequences due to the occurrence of unforeseen situations associated, for example, with the termination of the purchase and sale of an apartment or house. In order to secure a future transaction, it is first necessary to carefully study the contract and determine the responsibilities of all parties.

The emergence of controversial situations

Currently, market participants note a general trend towards a decrease in the occurrence of controversial issues when making real estate transactions. However, some still continue to exist, creating a negative reputation both for real estate agencies and for the purchase and sale procedure itself with the participation of an intermediary.

On the client’s side, the question most often arises is how to terminate a contract with a real estate agency for the sale of an apartment, what actions need to be taken and what documents to draw up in order to avoid penalties. There is no clear answer to this question, since in many ways the very possibility of such an action and its consequences are determined by the conditions specified in the contract itself. There are several reasons why a client may request to terminate a transaction:

  1. Violation of the law, fraud or violation of contract terms on the part of the real estate agency. Before starting paperwork on this point, you should find out whether it is possible to terminate the contract with the real estate agency based on the data that the client has. Since when the case is considered in court (if the realtor decides to recover the amount of his remuneration in this way), they may not be enough, or this will not be considered a violation of the law. An example in this situation could be the amount of the transaction, which is fixed by agreement in a certain currency, which may depreciate in the process of searching for a buyer. In this case, the client is obliged to sell the apartment at the price specified in the contract, especially if it is an exclusive contract for the sale of real estate. The realtor’s demands in this situation are not illegal if the terms of the contract did not stipulate recalculation of the final price if the exchange rate of a particular currency falls. It should be noted that the law is on the side of the consumer, who can refuse the service by simply refunding the actual part of the service provided. However, in some cases this amount may be zero. Therefore, real estate agencies often resort to procedures such as payment for individual stages of work, which causes additional difficulties when drawing up a contract, and the client has more difficulties with how to properly terminate the contract with a real estate agency.
  2. No need to sell real estate. The client may face such a situation if he himself finds a buyer for his house or apartment, or the need to sell suddenly disappears for another reason. In such a situation, the client first needs to notify the real estate agency about the current situation, after which it is best for the parties to resolve controversial issues through contractual means. If the agreement was not exclusive, then the question of how to terminate an agency agreement with a real estate agency will not cause any particular difficulties, since the maximum costs that the apartment seller will incur are the agency’s remuneration, which may not be paid in full.
  3. Force majeure circumstances. If this clause was spelled out in the contract, then it can play into the hands of either party, depending on the situation. Under certain conditions beyond the control of the parties to the agreement, the agreement may be terminated, and with them the obligations of the responsible persons. For a client, the presence of force majeure may be the answer to the question of how to terminate a contract with a real estate agency and return the money, leaving the agency without remuneration.

Exclusive agreement

This type of agreement provides for the complete transfer of the right to sell an apartment to a real estate agency, so that the client does not have the right to interfere in the sales process or sell the apartment without the participation of the agency. How to terminate an exclusive contract with a real estate agency is one of the most common questions in the field of real estate trading, since the purchase and sale procedure in this case may affect the financial interests of several parties. For example, when completing such a transaction, the intermediary may also undertake strict obligations to the buyer, and in case of failure to fulfill them, incur considerable losses associated with penalties. Therefore, when concluding an exclusive agreement, the realtor tries to eliminate the question of how to terminate the contract with a real estate agency for the purchase of an apartment, while giving maximum guarantees to the client that the transaction will be completed efficiently and on time.

Since terminating an exclusive agreement is a very complex procedure, and the penalties can be very large, it is recommended to enter into such an agreement only for those who have finally decided to sell the property, since the only significant condition for terminating such a transaction may be a gross violation on the part of the realtor.

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How to notify an agent of termination?


In order to terminate a contract with a realtor at any stage, the client will be required to send a notice to him indicating the date.

The notice can be delivered against signature to an employee of a real estate company or to the realtor himself. Or - send a notification by mail to the legal address of the company, keeping a copy and receipt from the mail.

The application must describe the circumstances under which the contract was concluded, and also, if there were any, list the shortcomings in the realtor’s work. At the same time, the notice indicates the date from which the agreement is terminated unilaterally.

How to do it without paying?

As follows from the provisions of the law discussed above, it will be possible to completely avoid payment under the contract in the event of its early termination only if the realtor did not incur any costs as part of its execution. Let us remind you that according to the law, the customer pays only actual costs. Let's look at typical situations that can occur in relationships with an intermediary company.

Advertising costs incurred

One of the most common situations is a realtor’s statement that he has already begun to invest in the actions he has taken. This action is called placing advertisements. However, here it is important for the client to remember that any actions that require material costs must be documented .

In other words, if a realtor claims that he spent a certain amount on placing advertisements, he is obliged to provide the customer with the appropriate payment documents: checks, receipts, and so on.

The buyer sold the home himself, and the agent demands a commission


There are cases when, after concluding an agreement with a realtor, he does not fulfill his obligations , however, in order to dull the client’s vigilance, he creates the appearance of hectic work. Sends SMS, calls, reports false information about supposedly potential buyers who have supposedly already looked at the apartment and taken time to think about it.

Ways to terminate a contract with a realtor for the sale of an apartment

The real estate market is full of various surprises, so any participant in the transaction must be able to protect their rights. Thus, problems increasingly arise when collaborating with a realtor.

What to do if a qualified (at first glance) specialist does not fulfill his duties? In real estate transactions, where the issue of funds is very sensitive, issues have to be resolved quickly and delicately. Let's look at whether it is possible to terminate a contract with a realtor, and if so, in what situations.

Contents of the article: guarantees of working with a realtor, termination of the contract, What kind of deal is concluded with a realtor? In practice, a so-called service agreement is drawn up between the realtor and the customer. In life, it can have other names, for example, a contract of assignment or an agency agreement. Many people think that these are all the same agreements. Not at all.

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