Can I cancel my listing agreement early?

Can I cancel my listing agreement early?

Can I cancel my listing agreement early without getting crushed by fees?

Quick answer: You usually can — but you must follow the contract

Yes. Most sellers can cancel a listing agreement early. But you can’t just walk away. A listing agreement is a legal contract. It spells out the term, termination rules, and fees. Ignore it and you risk paying a commission or getting pulled into mediation or small-claims court.

What to check first (the fast checklist)

• Read the listing agreement now. Look for: term length, termination clause, automatic renewal, and obligation to pay commission.
• Find any performance benchmarks: marketing requirements, open houses, or minimum showing numbers.
• Note signatures and dates. Know the effective date and the expiration date.

Real, practical options to cancel a listing agreement early

1. Mutual termination (best outcome)

• Ask the agent for a mutual release. Most agents prefer this to a fight. Get the release in writing and signed by both parties.

1. Termination clause and notice requirements

• Many contracts allow termination with written notice. Follow the method (email, registered mail) and timing exactly.

1. Agent breach of contract

• If the agent failed to market the property, ignored showings, or misrepresented services, you may have grounds to cancel for cause. Document everything: dates, emails, missed actions.

1. Buy-out or cancellation fee

• Some agreements allow early exit for a fixed fee or reimbursement of marketing costs. It’s cheaper than a commission in many cases.

1. Mediation or arbitration

• Contracts often require alternative dispute resolution before court. This can resolve the issue faster and cheaper.

1. Prove a sale came from another source

• If a buyer you found independently is under contract, you may still owe the agent if the agreement covers owner-found buyers. Get legal advice to determine exposure.

Steps to cancel without drama (do this now)

1. Read the contract and underline the termination clause.
2. Gather proof of agent performance (or lack of it). Save emails, showing logs, marketing invoices.
3. Call the agent. Request a mutual termination or explain your reasons calmly and clearly.
4. If needed, send a formal written notice by registered mail and email.
5. Get any agreement to cancel signed. Don’t rely on verbal promises.
6. Confirm MLS removal date and any outstanding fees in writing.

What you may still owe

• Commission if the buyer was procured during the listing term as defined in the contract.
• Reimbursable marketing or staging costs if spelled out.
• Liquidated damages if the contract includes them.

Final word — be smart, act fast, document everything

Contracts control cancellations. But practical, low-cost exits are common. Agents usually prefer to sign a mutual release so they can take new listings. If you want an expert to review your agreement and negotiate a clean exit, call me. I’m Tony Sousa — I help sellers cancel listing agreements fairly and move forward.

Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

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