In our contemporary market, selecting the right real estate agent is paramount. Whether you intend to purchase a home, sell one, or both, your Realtor’s expertise, resources, and strategies will directly impact what you are able to accomplish.

Of course, this is often easier said than accomplished in a real estate landscape as sprawling as Toronto, Ontario, where the number of registered agents is in excess of seventy thousand.

Unfortunately, some buyers and sellers may find themselves under contract with a real estate agent who does not live up to their expectations in one or more ways. If you are in a similar circumstance, this article is for you.

Continue reading for in-depth insights on how to fire or change your real estate agent while avoiding or mitigating potential penalties.

Eager to find your dream home? Book a buyer’s consultation with our team.

Can I Fire My Real Estate Agent?

As a client, you retain the right to cease your working relationship with your real estate agent if you wish to do so. However, the process of firing is often not as simple as merely deciding to move on. Rather, you must adhere to proper protocols based on your circumstances.

If you have been working with an agent under a verbal or ‘handshake’ agreement, you are typically able to move on without the risk of financial or legal repercussions. Even if you are dissatisfied with your agent’s approach, it’s important to remain professional and courteous as you inform them that you no longer wish to work together.

Inversely, severing a client-agent relationship becomes far more complex when there is a contract involved. While still possible, there are a number of critical considerations to be mindful of.

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Searching for the perfect Toronto home? Explore these related readings from our blog.

• How to Succeed With a Strategic Home-Buying Process
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• The Enduring Draw of Toronto’s Heritage Homes

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Understanding Your Representation or Listing Agreement

Buyer representation and listing agreements are commonplace in Canadian real estate – and for good reason. Recall that most Realtors are compensated on a commission basis. As real estate transactions require significant upfront preparation, investment, and labour, having a representation or listing agreement in place ensures agents can confidently dedicate their attention to your success.

If you signed a representation agreement (and that agreement is still active), firing your agent may be a complex process. To better understand your obligations, you will need to reference a few essential details outlined in your contract.

Term

Your representation agreement will only be active for a determined period of time. In Ontario, average representation terms generally range from three to six months, however, every agent (and their brokerage) will have a standard length in place. Depending on how far along you are in your term, it may be advantageous to wait for expiry, rather than proactively pursuing contract termination.

Termination Clause(s)

Your representation agreement should also stipulate a few contingencies that allow you or your agent to end the working relationship before the term ends. Most often, these conditions are related to the duties and responsibilities assigned to both parties.

As the client, you generally have the opportunity to terminate the contract if your Realtor does not live up to their outlined responsibilities. However, this may not completely untie them from your purchase or sale.

Special Factors: Owed Commissions

What happens if you are a seller who wants to terminate a listing agreement and then sells the home shortly after – either independently or with the services of another agent? Depending on the terms of your contract, your original agent may be able to claim commission on your sale despite not representing the listing at the time of closing.

While these circumstances are relatively rare, they are worth considering. If your property remains an active listing or receives offers following the termination of your listing agreement, be sure to consult a real estate lawyer to understand your financial obligations before the transaction proceeds.

How to Fire Your Agent: Keeping Records

Should you wish to terminate your representation or listing agreement, maintaining clear communication with your Realtor is of foremost importance. Beyond citing your reasons for cancellation (including ‘breach of contract’ when your Realtor is not performing their duties), you will need to maintain written records of any and all communications.

Having formal records of all conversions throughout the buying or selling process creates a crucial safety net should there be legal intricacies down the line.

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Wish to optimize the results of your home sale? Consider these related readings for additional insights.

• The Ultimate Guide to Selling Your Midtown Home
• Do Open Houses Sell Homes?
• How to Build Equity in Your Home

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Questions to Ask a Real Estate Agent (Before You Sign a Contract)

If you have successfully fired your real estate agent and wish to proceed with a purchase or sale, you will need to find and hire a new professional.

As a Buyer

• What is your professional experience?
• Do you work as a full time agent?
• How will you help me maximize my buying power?
• Do you have connections to off market buying opportunities?

As a Seller

• How well do you know my local neighbourhood?
• What is your most recent home sale?
• How will you market and advertise my house?
• How would you recommend I prepare my house for the market?
• Do you offer a full service approach?

Armin Group: Guidance You Can Trust

Searching for a real estate experience centred around your ambitions? Look no further than Midtown market leaders Armin Group. In a constantly evolving real estate arena, we provide unparalleled guidance and results – paired with a calm, low-stress process.

Buying or selling? As distinguished leaders in luxury Toronto real estate, Armin Group can help. Reach us by email at ar********@************ty.ca or call 416.960.9995.