Sellers who have put their property up for sale sometimes wish, for some reason, to withdraw from the listing contract, z.B. rent the property or sell to someone « by the owner » without the participation of their real estate agent or by the services of another real estate agent. A restriction: « Many times, » Edgar notes, « says the language [in the list agreement] that a commission is always due, unless [the seller] has made another agreement. » Because if you terminate a contract with an agent and you immediately sign with another agent, your first agent has every right to say that your skills contributed to your closure. As a general rule, exclusive contracts have a pre-defined period (often 2 to 6 months) when the contract is in the process of expiring. If your home is not yet sold, you can choose another agent without penalty. Home sellers can terminate a listing contract in California in almost all circumstances, but you must do so correctly and file the cancellation in writing. If you terminate the contract, but the agent is not in good standing with him, you may need to cough up a cancellation fee, and the agent could come after you for their commission, even if someone else sells their home. To make sure you know where you are, check your listing contract, advises Jane Peters, real estate agent and owner of Home Jane Realty in Los Angeles. You will find a section indicating that the agent may be due for a certain number of months after the end of the contract for all persons to whom they have granted access to the property for the duration of the list. For this to be valid, the section must be completed. At this point, you can apply to be assigned to another agent within the same brokerage, or you can request the full end of the contract. As your offer is technically made for brokerage – not with the agent – you might have easier to ask another agent in that broker.
A listing contract is valid from the date you sign it until the expiry date. The expiry date depends on certain factors and varies depending on the situation. The condition of the home, the current real estate market and the needs of the owner are factors that play a role in the validity of a listing contract. Century 21/Vasquez serves as an excellent reminder to sellers that the termination of their broker does not necessarily protect them from liability for paying a commission. On the contrary, agreements signed by sellers in the marketing and sale of real estate are binding and must be understood and executed. If this is not the case, sellers who terminate an agency relationship may be exposed to claims that give rise to litigation. Mr. and Mrs. Vasquez decided to sell their restaurant and, on October 14, 1992, they signed a written exclusive right to sell a list contract with Century 21 Butler to market and sell the property. The listing period expired on March 10, 1993.
The Court`s decision shows that the Vasquezes were in a difficult financial situation and that the enforcement had begun.