Can I cancel an Exclusive Agreement to Sell?

It would probably make sense for you to be transparent with the broker and tell them you will call them when you are ready to sell. They will probably let you off the hook – after all, why would they want to show your property if you will simply reject all offers?

jeanneholland

in General Discussion 8 years and 2 months ago

4

Please log in, in order to post replies!

4 replies

Newest Oldest

starfish11040 | 8 years and 2 months ago

string(1) "1"
object(WP_User)#5025 (8) {
  ["data"]=>
  object(stdClass)#4992 (12) {
    ["ID"]=>
    string(5) "23795"
    ["user_login"]=>
    string(13) "starfish11040"
    ["user_pass"]=>
    string(34) "$P$BbI1cBzEAa7oTESd4JHrsz0HOXb5o1."
    ["user_nicename"]=>
    string(13) "starfish11040"
    ["user_email"]=>
    string(26) "jeffreyklein@optonline.net"
    ["user_url"]=>
    string(28) "/forums/users/starfish11040/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:06:36"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "starfish11040"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(23795)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Last week I signed an Exclusive Agreement to Sell my multi-tenant residential investment rental property. I am now seriously having second thoughts about selling. I want to explore the possibility of keeping it and hiring a management company to manage the building.
I signed the agreement a week ago and the broker has already taken photos. He will begin marketing some time this week.
I can’t find a clause in the Agreement which directly addresses this.
What can I do?

slopefarm | 8 years and 2 months ago

string(1) "1"
object(WP_User)#5026 (8) {
  ["data"]=>
  object(stdClass)#5049 (12) {
    ["ID"]=>
    string(3) "655"
    ["user_login"]=>
    string(9) "slopefarm"
    ["user_pass"]=>
    string(34) "$P$BK7dzbqXJe9TV6iU0glcNZiXdOt9CR1"
    ["user_nicename"]=>
    string(9) "slopefarm"
    ["user_email"]=>
    string(18) "jrubin@law.nyc.gov"
    ["user_url"]=>
    string(24) "/forums/users/slopefarm/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:11:42"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "slopefarm"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(655)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

First, check the agreement. I would imagine (but i do not know) that you are not compelled to sell under the agreement, only that they get a fee for any sale within the exclusivity period and you can’t use a different realtor. I can’t imagine you don’t have the latitude to just change your mind and not sell. Assuming you have that right (and, really, I can’t imagine you don’t), use the property the way you want and the agreement will just expire.

EJR | 8 years and 2 months ago

string(1) "1"
object(WP_User)#5050 (8) {
  ["data"]=>
  object(stdClass)#5024 (12) {
    ["ID"]=>
    string(5) "79362"
    ["user_login"]=>
    string(3) "EJR"
    ["user_pass"]=>
    string(34) "$P$B.h6vu7ImM77fV6j0TvRwlieo3mAr4/"
    ["user_nicename"]=>
    string(3) "ejr"
    ["user_email"]=>
    string(19) "ejrothman@gmail.com"
    ["user_url"]=>
    string(45) "http://www.brownstoner.com/forums/users/ejr2/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:30:58"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(3) "EJR"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(79362)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Agree with everything @slopefarm said. I would add that, assuming there are no penalties under the agreement, it would be honorable of you to tell the broker of your intentions so that they do not waste their efforts. Consider, however, that since you likely have no obligation to sell the property, consider going through the motions with the broker to see what type of interest you get. The process could take a while and your feeling of cold feet could change with the right cash offer. Once (and if) you sign an purchase and sale agreement with a buyer, however, you will have significantly less leeway to change your mind, so proceed carefully and thoughtfully.

resident2 | 8 years and 2 months ago

string(1) "1"
object(WP_User)#5025 (8) {
  ["data"]=>
  object(stdClass)#5021 (12) {
    ["ID"]=>
    string(6) "181002"
    ["user_login"]=>
    string(9) "resident2"
    ["user_pass"]=>
    string(34) "$P$BYKCrEpDU34.3RJghRPk8/Xp1XpCve/"
    ["user_nicename"]=>
    string(9) "resident2"
    ["user_email"]=>
    string(21) "Jamanda1255@Yahoo.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2017-08-10 14:07:33"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "resident2"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(181002)
  ["caps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Call the Broker, tell them to put the listing on hold due to some business calculations that you need to work out with Taxes, re-investment, family obligations etc and that you will let them know when you are ready to proceed with the marketing.
The sooner you do this the better. You do not want your tenants getting all upset or their imaginations running in all directions…. and the less time, money & effort the broker has put into it, the better.