Did you know you can fire your real estate agent or Realtor? It’s not like firing an employee, you really don’t need a good excuse other than you want to and as long as both parties agree to all terms and sign the agreement then you’re golden. However, you really should have a good reason for firing your agent. In Texas, you can terminate a listing agreement or buyer’s representation agreement with your agent by using one of two forms. One form terminates buyer representation agreements and the second terminates a listing agreement.
Terminating a Buyer’s Agent
In Texas, you can fire your buyer’s agent by filling out and signing form TAR 1503, Termination of Buyer/Tenant Representation Agreement. This form has four basic sections, the first section lists the date when the initial buyer’s representation agreement started. The next section gives the date the agreement terminates once this form is signed. The third section defines any fees owed for services rendered, and the agreement also gives specific situations where you would still owe the broker after the termination, and lists the fees owed should those event occur. And the final section is a release from all obligations.
Terminating a Listing Agent
In Texas, you can fire your listing agent by filling out and signing form TAR 1410, Termination of Listing. This form has the same structure as the TAR 1503 form. In this form, you declare that you have no current negotiations pending or contemplated with anyone for the sale, lease, or exchange of the property. The next section defines any fees owed for services rendered, and the agreement also gives specific situations where you would owe the broker after the termination, and lists the fees owed should those events occur. And the final section is a release from all obligations.
The Best Times To Use These Agreements
You should use these these agreements when you’ve reached the point where the relationship with your agent can’t be salvaged. Do not fire an agent for minor disagreements. It’s not worth the hassle over a misunderstanding. Try to work out disagreements with your agent, and if that doesn’t work then get the broker involved in the mediation. If they won’t work it out then there’s not much left for you to do but fire them. You certainly don’t want to just wait until your contract expires naturally. Be aware that firing your agent will disrupt the selling of your house for a few days or weeks until a new agent has been hired so keep that in mind and first try to work out your problems with your agent.
Another time when you may want to fill out these agreements, but not sign it, is when you hire the agent. Have your agent fill out all the parts, except the dates, sign it and then give it to you. DO NOT SIGN IT, because that would make the termination effective. Instead, store it away for a future signature should the need arise. If your agent has any confidence in his/her abilities then your agent shouldn’t mind signing it as long as you can convince that agent that you don’t have a hairpin trigger finger ready to pull out the document at the least infraction. If your agent does agree to sign it before you enter a contract with that agent, be prepared to see a few fees added to the blanks to cover their expenses if you decide to pull out shortly after they spend a lot of money advertising your house. Seems only fair, since you didn’t give them a chance to make money on what they invested in marketing your house. This strategy lets them know you’re serious about their performance. And it tells them at the start of your relationship. Think of it as an agent pre-nuptial agreement.
I Fired Them, Now What?
Now that you’ve fired your former agent, it’s time to find a new one. Since you want an agent better than your last one, take your time and put some effort into the agent search. AgentHarvest specialized in helping clients find top producing real estate agents that sold houses in your neighborhood so I suggest you start there. Naturally I’m biased but at least I admit it. Also, be sure to read all the Realtor Interview Materials listed on this site.
Where Can I Find These Forms?
Termination of Buyer/Tenant Representation Agreement (TAR 1503) www.texasrealtors.com/mr/forms/blank/1503.pdf
Termination of Listing (TAR 1410) www.texasrealtors.com/mr/forms/blank/1410.pdf