If I Sign a Contract with a Real Estate Agent, Can I Get Out of It?

Signing a contract with a real estate agent is an important step when it comes to buying or selling a home. It formalizes your working relationship, outlines expectations, and gives them the right to represent you. But what happens if you’re not satisfied with your agent? Can you back out of a contract with a real estate agent? Redfin breaks down what you need to know to navigate this tricky situation.

If I sign a contract with a realtor, can I get out of it?

In short, whether you can get out of a real estate agent contract depends on the terms of your agreement. Most contracts include a termination clause that outlines your options if you’re unsatisfied with the agent’s performance.  The agent’s job is to advocate for you during the process of buying or selling a home. If you don’t think they’re doing the job effectively, you should consider making a change.

Most real estate contracts will have a clause that outlines the process for terminating the agreement early. Depending on the terms, this could include a notice period (such as 30 days) or a cancellation fee. Termination clauses can vary widely between agents and brokerages, so make sure you understand the terms before signing.

When you work with a Redfin agent, transparency is always at the core of the process. Redfin agents provide clear contracts that outline service expectations, commission rates, and the duration of the agreement. Depending on the negotiated terms of your agreement, you may be able to terminate a real estate agent contract at any time, but it’s important to review your contract carefully.

Reasons you may want to back out of a contract with a real estate agent

There are several reasons you might consider backing out of a contract with your agent, including:

1. Lack of communication: If your agent isn’t responding to calls, emails, or texts promptly, you may feel neglected and question their commitment to your needs.
2. Poor performance: Whether they’re not delivering the results you expect or their marketing strategy isn’t effective in getting your home noticed, performance issues can lead to frustration.
3. Change in circumstances: Sometimes, life changes—like job relocations, family emergencies, or changes to your financial situation—can lead you to put a pause on your real estate plans.
4. Conflict of interest: If you find out your agent has a conflict of interest, such as representing both the buyer and seller without proper disclosure, you may wish to end the relationship.

How to get out of a contract with a real estate agent

Here are a few steps you can take if you want to get out of a real estate contract with your agent:

1. Communicate your concerns: Before jumping straight to termination, try having an open conversation with your agent. They may be able to address your concerns and adjust their approach.
2. Request an early release: If you decide that backing out is your best option, approach your agent directly and request an early termination of the contract. Some agents may release you from the contract without penalties if they feel the relationship isn’t working.
3. Review the termination clause: If your agent isn’t willing to release you from the contract voluntarily, review the termination clause in your agreement. This will tell you what steps to follow and what fees, if any, you’ll owe.
4. Speak to the brokerage: If your agent is part of a larger brokerage, reach out to the broker to explain your concerns. In some cases, the broker may assign you a new agent within the same company or simply allow you to end the contract altogether.

Understanding real estate agent contracts

When you agree to work with a real estate agent, you’re typically signing either a buyer’s agency agreement or a listing agreement if you’re selling a home. These agreements establish the agent’s responsibilities, outline commission details, and define how long the contract will last.

Before you sign anything, it’s crucial to read the terms carefully and ask questions about anything that might be unclear. Most contracts will include specifics about how to terminate the agreement, including any penalties or conditions.

The post If I Sign a Contract with a Real Estate Agent, Can I Get Out of It? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.