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How to Fire Your REALTOR®

There are a few reasons you may want to fire your REALTOR®. If you feel you made a mistake by signing a listing agreement with the wrong REALTOR®, the best thing to do is to correct it and move on. If your Lawyer or Doctor was not working in your best interest, wouldn't you fire them too?

Your listing agreement is usually for a period of three to six months (sometimes longer) and you are entitled to cancel at any time. This can be done with a standard Alberta real estate form. Edmonton REALTORS® (depending on the agency designation) also has the option of terminating the listing contract at any time without your consent, but this rarely happens.

If you have hired the wrong real estate company or agent to represent you, fire them. Do it professionally and do it in writing. There are a few things to consider prior to firing your Edmonton REALTOR®. All of these contingencies will be set out in your original listing agreement.

Who owns the listing?

The listing is owned by the brokerage, not the REALTOR®. If you have a problem with the agent, call the broker. If you have a problem with the broker, call consumer affairs and the Edmonton Real Estate Association.

Is there a fee to cancel your listing agreement?

There may be a cancellation fee in the listing agreement. This fee is usually the cost to cover expenses already paid by your Edmonton REALTOR® prior to your cancellation. The service fee amount will be set out in the agreement you signed. However, if you paid a fee upfront, there usually is no cancellation fee.

Will I still have to pay a commission after I fire my REALTOR®?

If a buyer was introduced to your home during the term of your listing agreement and you sell it privately (during a specified time in the agreement) to that same buyer, commissions will be payable.

Can I hire another agent immediately?

Yes. Once your home is off of the market, you are free to list your home with any licenced real estate agent.

When you are ready to fire your REALTOR®, simply inform your agent that you would like to cancel the listing and ask him to provide you with the listing cancellation form. There will be two choices on this form. Make sure you have a property termination end date, the office broker (not the agent) has signed and you have received a copy.

1. Unconditional termination

  • Which allows no further obligations for either the seller or Realtor

2. Conditional Termination

  • Your agreement will end on the termination date but your obligations will continue under the terms of Section 10 of the Exclusive Seller Representation Agreement. There may also be an additional term.

If your Edmonton REALTOR® fails to provide this form within a timely matter, contact their brokerage and tell them about your grievances with the agent.

Can you fire a Buyers Agency or Buyer REALTOR®?

Yes. It is a different form, but you are free to fire your REALTOR® when buying. There may or may not be a small fee to get out of the agreement. This fee would have been set out in the original buyers brokerage agreement which states: If you change your mind about looking for a property, you must tell us in writing. You must reimburse us for our reasonable expenses up to the time you tell us. Reasonable expenses will include: (If this section is blank - no penalty will be payable). However, this does not allow you to approach a seller that has been introduced to you while working with your realtor. If you do this, you will have to pay a full commission as set out in the original buyer brokerage agreement.

If you have any questions, both RECA (the Real Estate Council of Alberta) and EREB (the Edmonton Real Estate Board) have plenty of great information to help you make the best decision for you!

Have questions about firing your REALTOR®, feel free to reach out. We are here to help.

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Understanding Buyers Brokerage Agreements in Alberta

Buyer Brokerage Agreements have been around for several years, and have only been mandated for the last decade. This legal change created security for both consumers and REALTORS® in Edmonton and throughout Alberta. This form states the responsibilities of both the buyer and their real estate agent including:

  • The mandated fiduciary duties, to protect the interests of the buyer
  • The buyer cannot hire more than one broker or real estate agent to represent them
  • The term of the agreement. Depends on how long the real estate agent chooses to work with a buyer, this agreement is normally 30 Days to 1 year and allows enough time for the buyer to purchase a home. If the buyer has not purchased a home during the time frame, they may extend the agreement or sign with another agent. (The time frame is negotiable)
  • The retainer fee (normally $1000 - $2500) is held in trust by the real estate agent/broker and forms part of the buyers down payment. This means the amount of your retainer will be used as part of your downpayment. However, if you do not purchase within the specified time range, your retainer will default to the real estate office trust account.
  • Remuneration is stated in the agreement and can not be changed without written consent from all parties once agreed upon. This protects the agents' commissions and allows the buyer to know how much the REALTOR® receives for their services. (usually paid for by the sellers)
  • While under the agreement, If the buyer elects to purchase a property without the help of their real estate agent, they will owe the agency the commission set out as per their Buyers Brokerage Agreement.
This agreement also lays out the obligations and duties of the real estate agent ensuring the agency is working in the buyers best interest. Some of these obligations may include:
  • Showing you all properties you may be interested in as soon as possible
  • The duration of the agreement
  • Advertising for properties that meet your search criteria (paid for by the buyers agent)
  • Pulling land titles certificates to ensure closing capacity
  • Setting you up on Auto-prospecting.
  • Fiduciary Duties of the real estate agent
  • Explaining and helping to prepare writing offers to purchase
  • Negotiate favourable terms for the buyer
  • Provide a Buyers CMA to ensure you are not overpaying
  • Inform you of all aspects of your offers including any counters
  • Assist you with a chose of mortgage brokers, inspectors, lawyers, etc
  • Any other relevant services you may require 
Summary:
Basically, a buyers brokerage agreement allows the REALTORS® to work in the best interest of the buyer and disclosure ALL KNOWN information on both the property and the seller. Under a customer status, this is not the case.
 
Note:
When buying a new build - use a REALTOR®, not the salesperson working at the show home. Who do you think they are really representing?  

For more information on working under a Buyers Brokerage Agreement, feel free to contact us.

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