ask george & chuck
June 1, 2009

Terminating an agent
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: We listed our house for sale with a real estate agent. After three weeks on the market, we signed a contract with buyers that included an option period. A few days after the option period was over, the buyers walked away. We asked our agent about the earnest money, and she told us that she "just found" the buyers' termination letter that was dated on the last day of the option period. Therefore, we had no claim to the earnest money.

Among the e-mails we received from our agent, we found one that was not intended for us. In it, she, the buyer, and the buyer's agent talk about signing and dating a termination letter within the option period but not presenting it until they're sure we won't come down on the price. They purposely withheld the termination letter to try to get a lower price from us and pulled out the previously signed letter when we would not come down in price. We confronted our agent with this information, demanding our earnest money and a termination of our listing contract. She refuses to cooperate with either request. What should we do?

Answer: There are two things you should do. First, unilaterally terminate your listing contract with the real estate brokerage that holds your listing. Based on the information in your e-mail, you have cause to terminate your agency relationship regardless of whether your agent agrees to the termination. Consult a real estate attorney to ensure you take proper action. Second, if your agent is a Texas REALTOR®, call the Texas Association of REALTORS® at 800/873-9155 and ask to speak with someone regarding the Ombudsman Program. This program is designed to facilitate communication between parties in situations such as yours.