Legal Question in Real Estate Law in California

Re: Cancellation of Listing Agreement

If you are trying to rescind the listing agreement because you no longer want to sell the house, you have no problem. You cannot be forced to sell. The listing agreement says that he must be paid if the house sells during the listing period.

If you want to sell yourself or hire another agent, you have a tougher problem. You will need to show that the agent violated some part of the agreement or his duties under agency laws.

Without knowing what your "just cause" is, no one can give you a valid opinion.

Re: Cancellation of Listing Agreement

In general, contracts can be canceled (rescinded) for a rather limited range of reasons, not simply for 'any just cause.'

The typical list is lack of capacity (minority or insanity), illegal subject matter, fraud or duress. A few statutes provide other reasons, such as a short 'cooling off period' for dancing lessons, interstate land sales, etc.

Contracts can also be rescinded when there is a material and continuing failure of the other party to perform, i.e. a material breach. However, please be advised that just because Party A to the contract is displeased with Party B's performance does not mean there has been a breach significant enough to allow Party A to rescind. The displeasure must relate to a truly significant failure to perform a truly material aspect of the agreement.

In my view, real estate listing agreements are rather tightly worded to make it difficult for the owner to slip out of the contract and deprive the broker of a possible commission. The standard form agreements have been developed and re-written based on decades of experience with keeping the seller locked in.

On the other hand, the real estate industry is quite heavily regulated, and brokers who do not deal with justified client displeasure may be subject to discipline -- and the listing agreement may possibly be subject to rescission.

I suggest that if you haven't done so already, and if you think it could do any good, speak with the supervising broker involved, and see if you can negotiate an understanding.

Does the agreement have an arbitration clause that the parties signed?

I see you are just up the road from me -- call if you want to set up and appointment.

Re: Cancellation of Listing Agreement

The practice in the trade is that the agent does not sue for breach of the listing agreement. However, you may be the first person that breaches(rescinds), and gets sued. So read your agreement carefully, and see what the agent promised to do. Then any discussions you have with either the agent or supervising broker, be sure and send a letter afterward to memorialize the discussion - you said I said. Be very reasonable in your requests. When push comes to shove in the court room. The judges like to make awards to people who have acted (performed) reasonably. This makes the judges feel good at the end of the day.

Re: Cancellation of Listing Agreement

What does the agreement say? And, how long does it have to run? It would be difficult to get out of the agreement unless you can show the broker is not living up to his/her part of it. You are probably better off trying to negotiate your way out of it--the realtor may be open to this, especially if he/she knows he/she hasn't performed well under the contract.