Listing Agreement Termination Letter Sample

In this guide, I will walk you through the process of crafting an effective termination letter, step-by-step, and provide you with a template to make this task as straightforward as possible.


Key Takeaways

  • Understand Your Contract: Review your listing agreement to ensure you understand the terms and conditions regarding termination.
  • Be Clear and Concise: State your intentions directly and politely without delving into unnecessary details.
  • Include Essential Details: Mention your name, property address, and the effective date of termination.
  • Use a Professional Tone: Keep the tone formal and courteous.
  • Provide a Reason (optional): Briefly explain why you are terminating the agreement if it feels appropriate.
  • End on a Positive Note: Thank for the services provided and express your wishes to part on good terms.
  • Attach Necessary Documentation: Include any forms or documents as required by your original agreement.
  • Proofread: Ensure there are no errors before sending the letter.

Step-by-Step Guide to Writing Your Listing Agreement Termination Letter

Step 1: Review Your Agreement



The first step is to thoroughly review the listing agreement you signed with your real estate agent. This document usually outlines the specific conditions under which you can terminate the agreement before its expiration date. 

Look for any clauses related to early termination, including any required notice period and potential penalties.

Real-life example: In one of my previous experiences, I had to terminate a listing agreement because the agent was not effectively marketing my property as promised. The contract specified a 30-day notice period, which I adhered to in order to avoid penalties.

Step 2: Gather Necessary Information

Collect all the necessary information that needs to be included in your termination letter. This typically includes:

  • Your name and contact information
  • The real estate agent’s name and contact information
  • Property address
  • Date of the agreement
  • Specific reference to the clause in your agreement that permits termination

Step 3: Draft the Letter


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Begin your letter by addressing it to the specific agent or the real estate agency in a formal manner. Here’s a basic structure to follow:

Introduction: Clearly state your intention to terminate the listing agreement. Mention the property address and the date of the agreement to avoid any confusion.

Body: If applicable, briefly mention the reason for the termination. Refer to the clause in your agreement that allows you to terminate the relationship. Be clear but polite – avoid expressing frustration or dissatisfaction.

Conclusion: Thank your agent for their efforts and express your intention to end the relationship amicably. Mention the effective date of the termination and how you expect any remaining financial matters to be handled.

Step 4: Close Formally

Sign off your letter with a formal closing such as “Sincerely” or “Best regards,” followed by your signature and printed name.

Step 5: Send the Letter

Send your termination letter via a method that confirms receipt, such as registered mail or an email with a read receipt. This ensures there’s proof of your communication should any disputes arise.


Template for Listing Agreement Termination Letter

[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]

[Agent’s Name]
[Real Estate Agency’s Name]
[Agency’s Address]
[City, State, Zip Code]

Dear [Agent’s Name],

I am writing to formally notify you that I am terminating our listing agreement regarding the property at [Property Address], dated [Date of Agreement], effective immediately as of [Effective Date of Termination].

After careful consideration, I have decided to take this action [Optional: insert reason for termination] in accordance with the provisions outlined in our agreement (specifically clause [X]). Please ensure that all marketing efforts cease and that any signage is removed from the property promptly.

I want to take this opportunity to thank you for your services and the efforts you have put forth in representing my property. I hope to conclude our agreement amicably; please confirm the receipt of this letter and the understanding of the termination.

Please let me know the next steps regarding any administrative or financial closure that needs to be addressed.

Sincerely,

[Your Signature (if sending via postal mail)]
[Your Printed Name]

Frequently Asked Questions (FAQs)

Q: What should I include in a listing agreement termination letter?

Answer: In my experience, it’s essential to include your name, the property address, the date of the original listing agreement, and a specific mention of the clause that allows for termination. Don’t forget to state the effective date of termination and your contact information for any follow-up.

Q: How do I ensure my listing agreement termination letter is legally compliant?

Answer: I always recommend reviewing the original listing agreement to understand any specific requirements or conditions for termination. Additionally, consulting a real estate attorney can help ensure that all legal bases are covered, which I have found invaluable in protecting my interests.

Q: Can I terminate my listing agreement via email?

Answer: From what I’ve practiced, yes, you can terminate a listing agreement via email if your contract does not specify otherwise. However, I ensure to follow up with a phone call and request a read receipt or confirmation of email to guarantee that the notice has been received and acknowledged.

Q: What is the best way to deliver a listing agreement termination letter?

Answer: Based on my experiences, the best way to deliver a listing agreement termination letter is through registered mail or personal delivery with a confirmation receipt. This provides proof that your agent has received the letter, which can be crucial if any disputes arise later.

Q: How soon can I list with another agent after terminating a listing agreement?

Answer: I always check the original listing agreement for any exclusivity clauses or penalties. Typically, once the termination is effective and any specified conditions are met, you can list with another agent immediately. However, ensuring there are no ongoing obligations is crucial before moving forward.

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