Today I was asked about what the "termination clause" was in my listing agreement in the event that the seller was unhappy with my service. It was asked during the course of an interview prior to the prospect of listing with me. This article is a response to that and a response to others who may be wondering the same thing.
The listing agreements and buyer brokerage agreements that are most commonly used in our area don't get too explicit with termination clauses, while the law does get explicit & should be relied on for termination when not explicit in the agreement.
The REIN Standard Agent Exclusive Right to Sell Brokerage agreement repeats much of what's in the law.
Below I am providing where to look and what you can terminate for as well as how to avoid getting to the place of termination. The primary recourse for termination, in my experience, isn't by some actual breach of contract, but by exercising the right of "mutual agreement" since an actual breach of contract according to the legal code seems to happen much less often than less serious problems.
Disclosure
Please keep in mind that I am a real estate agent, not an attorney and that for any interpretation of the law, an attorney within the field of real estate can best interpret the law.
The mentioned forms and laws change over time & this article was originally composed and researched on 11/23/22. While this page may be used as a resource, before acting on any information entailed, it's best to check current contracts & legal code, as these can vary substantially over time & this page may not be up to date regarding certain matters after 11/23/22. In the event that you see any changes that you believe should be updated on this page, Adam would sincerely appreciate you informing him of the change at agarrett@ggrva.com .
Termination Details Per VA Law
Recommended steps for termination
To avoid getting to the point where termination seems best, I advise...
Vetting Potential Listing Agents
Listing Agreement Types Generally
Vetting Potential Buyer Agents
Legal Duties of Real Estate Brokers & Salespersons to Their Buyer Clients
Legal Duties of Real Estate Brokers & Salespersons to Their Seller Clients
Definitions from VA Legal Code
Contractual Duties of Real Estate Brokers & Salespersons to Their Buyer Clients in Non-Exclusive Agreements (Virginia Association of Realtors form used throughout VA by many real estate agents)
Contractual Duties of Real Estate Brokers & Salespersons to Their Buyer Clients in Exclusive Agreements (Virginia Association of Realtors form used throughout VA by many real estate agents)
Contractual Duties of Real Estate Brokers & Salespersons to Their Seller Clients With Exclusive Right to Sell Agreement (REIN form used in Hampton Roads by many; REIN is the primary Multiple Listing Service of Hampton Roads)
Contractual Duties of Real Estate Brokers & Salespersons to Their Seller Clients (REIN form: Listing Agreement)
Beware of Owing Commissions After Termination