While investing in real estate can be thrilling, it can also be frustrating and stressful. Besides the papers, you have to deal with some people who might get involved with your decision-making.
One person to be involved is your real estate broker who would negotiate, arrange, and oversee your real estate transactions. Though one of their roles is to guide and help you find the property that fits your needs, they could also be a potential source of stress.
Relationship With Your Real Estate Broker
You are in a business relationship with your real estate broker the moment you start the negotiation. Unfortunately, relationships of any kind can be tricky, and the same applies to your relationship with your broker. You might not click together, which could lead to misunderstanding and setbacks along the way.
As a client, you would want to feel comfortable and valued. However, it might be hard to achieve when your relationship with your broker is strained. Ending your partnership might be a reasonable thing to do.
Determine Why You Are Leaving
Before you tell your broker that you’re ending your partnership, you must have determined your reasons. Because whether you like it or not, your broker might not let you off the hook unless you have valid explanations. While it could be one of your rights as a client to break a deal, brokers also have the license to question your decision.
Whatever your reasons are for leaving, it would help if you would be more rational in breaking any deal with your broker. While emotions could easily get in the way, especially when you are unsatisfied and unhappy with the deal’s progress, excellent communication is still the key. A lot of time and effort will be possibly wasted if you would let your feelings take the lead.
Express Your Concerns
When you have already determined enough reasons to leave your broker, it might be the right time to express your concerns. You would have to be honest with your broker if you find that the relationship isn’t working anymore. They have the right to know as soon as you finally decided to leave.
While expressing your concerns entails honesty, it’s vital to break up with your broker in the most respectable way. Keep in mind that they also have put considerable time and effort in finding you a property that suits you. Whether you’re leaving for personal or business reasons, your broker deserves a good explanation.
Offer Constructive Feedback
Your broker also deserves to know why things are not working for you. While you could be bold and blunt in doing so, it wouldn’t hurt to offer your broker constructive feedback.
They might have lapsed, but by making them understand why you find your partnership ineffective, you could give them a chance to make things right for their next transactions. You could also tell them if you had any other expectations from them.
For example, might have expected them to know of a few professional moving companies, which they didn’t. By doing this, you are helping them improve their work and sparing their future clients for the same dilemma.
Acknowledge Your Contribution To The Problem
It wouldn’t be fair to hold your real estate broker accountable for everything that went wrong. There might also be little errors on your part. For every relationship to work, both parties would have to do their part. It would also be helpful to acknowledge your contribution to the problem.
If the partnership isn’t working well because of unmet expectations, it won’t hurt to express that you may be partly at fault. Perhaps, there were instances that you were not able to talk through your expectations with your broker. By doing this, your broker might be able to accept their faults without feeling too miserable. Thus, you might reach a mutual agreement to end the business relationship.
Settle Things Legally
When you’re done with the basics and already settle an agreement to terminate your partnership, your next move is to go over the legal matters. Ending things legally is a protection for both parties. It would mean that there was no unfinished business left that could create problems in the future.
On the other hand, if you encounter trouble in ending the business relationship, you can also take legal steps. Just in case your broker would not release you, and there is enough evidence to prove any violations on the broker’s part, let the legal experts handle the matter.
The following are some of the legal undertakings that might get involved in your decision to leave. Each step might depend on how far you’ve set a deal with your broker.
Follow Contract Agreement
If you buy house and land in melbourne or any other places, you are going to be bound by the terms once you’ve signed a contract with your broker. Though it’s not standard industry practice, some companies add a particular clause in their agreement allowing the clients to leave any time. Most brokers will also likely require a 90-day completion before the contract will be terminated. Whatever the terms you agreed in the signed contract, you have to follow it.
In case there is no termination clause, it doesn’t automatically mean you can’t get out. Both parties can mutually agree to terminate the agreement. In other words, communication is still the key to reach a termination agreement with your broker.
Pay Possible Termination Fees
If there is a breach in contract, there might be some associated termination fees. However, it would still depend on what is specified in your agreement. Your contract might include the specified commission amount to be paid at the time of settlement.
If there is no mutual agreement to end the obligations stated in the contract, you still owe the broker the agreed-upon commission, whether you are a buyer or seller.
Document Cancellation of Contract
Regardless of your reasons to cease the relationship, it’s necessary to put everything into writing. If you don’t want to encounter unnecessary problems, you need to document a cancellation of the contract.
You can also include in the documentation how and why your broker did not meet the agreement. You can stipulate that the broker would not be entitled to any commission if there is negligence on the broker’s part.
Though there are thoughtful ways to tell your real estate broker that you’re leaving, nothing beats thorough research and deliberation before committing to any contract. It might help lessen any unpleasant experiences for you and your potential broker. But if you already committed and found out that it’s not working out, end the relationship as early and politely as possible. It’s your right as a client to have a pleasant home buying experience, but the broker also deserves your respect.