Whether or not you can terminate your buyer's agency contract largely depends on the terms of the agreement, your relationship with your agent and your particular circumstances. Some buyer's agency agreements may allow for conditional or unconditional termination directly in the document. All buyer's agency agreements can be terminated for cause if you can show that the agent has breached the contract. Finally, you may always terminate your agreement with the permission of your agent.
A buyer's agency contract establishes the legal relationship between an agent and an individual or corporation seeking to purchase a piece of real property, according to Dave Ramsey. The agreement should clearly set forth a detailed description of the property the buyer is seeking, the duties of the agent, how the agent will be compensated, the capacity in which the agent is representing the buyer and a description of the term of the agreement or how long the agreement lasts.
Examine the terms of your buyer's agency agreement to see if there is a clause stating when the buyer has a right to terminate the agreement, says Realtor.com. The termination clause may allow the buyer to cancel the agreement without cause for a fee. Additionally, a termination clause may set out specific facts under which the buyer is permitted to cancel the agreement. If your agreement has a termination clause and it applies to your circumstance, write a letter to your agent stating that you wish to invoke the termination clause. In your letter be sure to explain why you are taking this action.
If your buyer's agency agreement clause is silent as to termination, check to see if your state has a specific form for terminating buyer's agency contracts, or contact your agent directly to see if her office offers such a form. This form may be called, "termination of agency and release." You can search online for buyer's agent termination letter samples to get a feel for them.
The termination form will ask you to provide some information about why you wish to terminate the agreement. The form should also outline the fees that you may be required to pay following termination. If your agent and your state do not offer such a form, write your agent a letter asking if she is willing to terminate the agreement and the proposed terms of cancellation.
If your agent is unwilling to terminate your buyer's agent contract on terms that you find acceptable, you may always attempt to cancel the agreement by pursuing a claim for breach of contract. Start by reviewing the duties of the agent as listed in your buyer's agency contract. Also, implied in an agency contract is the fiduciary duty for the agent in your best interest. If you determine that the agent has breached any of her duties, explain that you intend to pursue a claim for breach of contract if you are not allowed to cancel your agreement. If you agent will not comply, consider initiating a lawsuit for breach of contract.
Make sure not to confuse your contracts; a letter of termination of purchase and sale agreement is very different than a letter of termination for the buyer's agency contract. Similarly, if someone mentions a "termination of real estate contract by buyer" you may need to clarify the context. If you are confused about paperwork, do not hesitate to ask your agent or broker for clarification along the way.