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Cancellation Clauses in MLS® Listing Contracts


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#1 MarkoJ

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Posted 19 April 2012 - 09:03 PM

When you list your property with a REALTOR® make sure you understand any cancellation clauses that may be in the contract.

For example, if you have a contract for 90 days and you want to cancel after 45 days you may face cancellation fees.

I commonly see fees in the range of $300 to $500 and sometimes even half the commission!

There are many REALTORS® that do not charge cancellation fees. This is an important aspect of a listing contract that you need to discuss with your REALTOR® before signing the dotted line.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#2 VicHockeyFan

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Posted 19 April 2012 - 09:18 PM

When you list your property with a REALTOR® make sure you understand any cancellation clauses that may be in the contract.

For example, if you have a contract for 90 days and you want to cancel after 45 days you may face cancellation fees.

I commonly see fees in the range of $300 to $500 and sometimes even half the commission!

There are many REALTORS® that do not charge cancellation fees. This is an important aspect of a listing contract that you need to discuss with your REALTOR® before signing the dotted line.


Why would someone cancel if they are facing a fee, unless they are doing it to switch realtors, or because they have an outside sale (going around the realtor)?

Can't the vendor theoretically making closing terms so onerous that they can essentially reject any offer inside the 90 days or whatever the contract is?
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#3 MarkoJ

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Posted 21 April 2012 - 08:52 AM

Why would someone cancel if they are facing a fee, unless they are doing it to switch realtors, or because they have an outside sale (going around the realtor)?

Can't the vendor theoretically making closing terms so onerous that they can essentially reject any offer inside the 90 days or whatever the contract is?


The point of the fee is to prevent sellers from cancelling. My philosophy is a bit different in that I believe if the seller is unhappy with services being provided, or life circumstances change, they shouldn't be trapped in a contract due to cancellation fees.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#4 VicHockeyFan

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Posted 21 April 2012 - 08:56 AM

The point of the fee is to prevent sellers from cancelling. My philosophy is a bit different in that I believe if the seller is unhappy with services being provided, or life circumstances change, they shouldn't be trapped in a contract due to cancellation fees.


I know why the fee is there, I just can't see ANY circumstance where one would pay it, rather than just letting the listing expire.

If they suddenly decide they don't want to sell, at any price, there is a way to reject offers. Make the closing terms impossible for the buyer to meet is one way. Raising the price before any offers come in is another way.

So what I'm saying is, any seller that paid these fees because they thought that was the only way to avoid potentially selling against their wishes, were mislead, by their Realtor.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

 



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