How to Terminate Listing Agreements in Texas

by Tim Brugger ; Updated July 27, 2017
What to do when it's time for a new Realtor.

Listing agreements are legally binding contracts utilized by home sellers and real estate agents when selling personal or commercial property. The process to end a listing agreement prior to the end of its contractual life, generally six months, will differ from state to state. In Texas, the state provides little if any support in terms of appeals or involvement. However, that does not mean sellers are left without options if the relationship with an agent goes sour.

Step 1

Determine the type of listing agreement you have with your agent. The most common agreement a seller is asked to sign is an exclusive listing. This gives the listing agent sole responsibility, and benefit, in the marketing of the home. However, there are also multiple listing agreements, open agreements and a host of others. The process for terminating each agreement will differ, as each provides a different contractual relationship.

Step 2

Review provisions of the listing agreement. Some real estate brokerages in Texas will allow for early termination of the agreement, with or without cause—akin to a "satisfaction guarantee." However, many are much more stringent. Also, a listing agreement may allow for early termination, however the seller will incur charges for terminating the listing agreement prior to completion.

Step 3

Contact the principal of the brokerage your agent works for, if applicable. As is the case with many businesses, when there is an unhappy client, a principal wants to ensure everything has been done to appease this person or persons. Whether or not a listing agreement allows for unilateral termination or not, the principal of a brokerage may very well side with the client.

Step 4

Document the reasons for being dissatisfied. Assuming the desire to terminate a listing agreement is the result of something tangible, such as a lack of effort or incompetence on the part of the agent, document the reasons for feeling this way. This will provide substance to the claims, be it for a principal of a real estate firm or a judge.

Step 5

Consult an attorney. The state of Texas views listing agreements as a "private contractual matter." As such, if pursuing the matter in court becomes a necessity, it is important to be prepared with specific examples of shortcomings.

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About the Author

Tim Brugger has been writing professionally since 1995. He has published newsletters, white papers and informational articles for organizations such as IDS Financial Services, Red Chip Review and Western Independent Bankers. His fiction has also been published online. Brugger majored in business studies at the University of Oregon.

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