BIC TIP #1280: The Seller Fired You
“I am going to pull my house off the market. Thank you for the four days on market and all that you spent to get it ready, but no, I am done here.” That is the last thing a listing agent wants to hear. In this BIC TIP, Stephen Long explains what happens when the seller fires you, and how a strong listing agreement and an honest up-front conversation protect you.
The Call Every Listing Agent Dreads
Stephen gets this call often. The seller suddenly decides they do not want to sell. The listing agent already paid for photos, invested time and effort, and never really got the opportunity to sell the home. The agent asks: we are still under a listing agreement, can the seller really do that?
The answer has two parts, and both matter.
Yes, They Can End Your Service
The seller can absolutely terminate your service. If they want the property off the market and no longer want it advertised, that is their call.
But they cannot terminate the terms of the listing agreement. It is a binding contract between the listing firm and the seller. The agreement specifies that in the event of a termination, the firm may require reimbursement of fees, costs, and expenses, and may have other potential remedies.
Put Your Protection in the Compensation Section
If you want an early termination fee or a clear reimbursement policy, it needs to be in the contract. Stephen encourages listing agents to place it in the compensation section of the listing agreement, so it is clearly disclosed what you will charge if a seller pulls out early.
That way, there is no debate later about whether the seller knew. It is right there in writing, and they signed it.
The Practical Takeaway
The best defense is a good conversation on the front side, before the seller signs on the dotted line. Explain the seriousness of the contract and let them know that you will be spending real money to market and sell their home.
Ask them to commit the time and energy needed to get it done. And if things still end prematurely, your listing agreement and your broker-in-charge will guide what happens next.
