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Cancelling Real Estate Contract

Discussion in 'Legal Issues' started by alexm, 24th Jun, 2015.

  1. alexm

    alexm Well-Known Member

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    Hi there,

    I signed a NSW contract for sale with a real estate agent (exclusive agreement for three months) which has now passed and the existing agent still has the listing.

    Unfortunately I am unhappy with their performance (or lack thereof) and am planning to list the property with another agent.

    If I list this property with another agent, would the poor performing agent still be entitled to a commission if it sold through another agent outside of the exclusive agreement window?

    Thanks
    Al
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Read the agreement and see how you can terminate the contract. If you don't terminate you may still be liable.
     
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  3. Perp

    Perp Well-Known Member

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    Further to what Terry_w posted, if a buyer who the first agent has already introduced to the property buys, possibly. If there are no solid potential buyers around, shouldn't be an issue.
     
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  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    From personal experience you want the former agent to agree to terminate the contract. A new agent may also refuse to take on the listing if their fee may be in dispute later.

    Without the contract being mutually terminated you would need legal advice on the potential to pay more than the one sale commission. If the original agent says "no" then you can assured that the contract you entered into needs legal advice.
     
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  5. Be Developer

    Be Developer Property Developer Business Member

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    Send termination letter in detail in writing!!!
    Where is a property? Why hasn't it sold for 3 months??
     
  6. alexm

    alexm Well-Known Member

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    Thanks for the feedback. I'll double-check the sales contract for any termination clauses.