You have not shown the house even once for the past two months, which, according to the termination clause on the contract, entitles me to terminate it. I entered into the contract with you on DATE, and it specifically states that you would show the house to potential buyers at least three times per month. This letter is a formal request to terminate the contract between Name of Real Estate Company and myself for selling the house at Address of House. Sample Real Estate Contract Termination Letter If the client does this, they may need to pay two commissions when the house is sold.īelow is a sample real estate contract termination letter.
The client should also not enter into a contract with another real estate broker until the previous contract is completely void. It should also be noted that filing a suit against a real estate agent for acting in bad faith is expensive, time consuming and rarely has a good outcome for the client. For example, once the house is in escrow, the client can’t fire the agent and refuse to pay the earned commission. Breach of contract could give the agent or broker a reason to file a lawsuit against the client. The client should be very careful not to breach the contract before going through the proper channels. Even if there isn’t this clause, if the agent can prove that his or her efforts were directly connected to the purchase or sale of the house, the client may still be liable to pay a commission.
There may be a commission or compensation section of the contract that includes a disclaimer that requires the client to pay a commission to the agent if the agent procured the buyer within a specified time after the contract ends. Just because the contract is void, doesn’t mean the client doesn’t have to pay commission fees, especially if the agent brought the buyer to the seller. There are usually commissions to pay when a real estate contract is terminated. The client should keep the return request receipt. If the client needs to send a contract termination letter, to get released from the contract, the letter should be written in formal business style and sent by certified mail. If the agent has not fulfilled these contract stipulations, the client can legally break the contract. For example, the contract may stipulate the number of time the agent should show the house in a month, or the number of ads that should appear in a local paper. The duties of the agent will most likely be outlined in the contract. The client may need to study the actions of the agent to determine if he or she has committed breach of contract. In many states the only way to cancel a real estate contract other than by mutual consent is because of breach of contract.
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