Although Florida Realtors exclusive agreements (listing or buyer brokerage agreements) don’t contain a cancellation clause, they do allow the broker to assign the agreement to a new brokerage.
ORLANDO, Fla. – Question: I am a broker with two separate problems that need a solution. One of my associates is working with a troublesome seller who just isn’t working well with anyone at my firm after signing a Florida Realtors® Exclusive Right of Sale Listing Agreement. We also have a buyer under an Exclusive Buyer Broker Agreement whose incessant demands have made it hard for anyone to assist. Neither party is willing to sign a document to terminate the listing or buyer agreement. Can I just fire them and walk away from the agreements?
Answer: No. The Florida Realtors Exclusive Right of Sale listing agreements and Exclusive Buyer Broker Agreements do not contain a unilateral cancellation clause. Both agreements provide that there will be an exclusive representation beginning on one date and ending on another. Assuming the seller and buyer are not in default of one or more of their obligations described in their respective agreements, there’s not an option for the broker to “fire” the seller or buyer.
Of course, if you’re able to get either of them to change their mind and sign a termination, our modification forms would work. The forms Modification to Listing Agreement and Modification to Exclusive Buyer Brokerage Agreement both contain options to create a conditional or unconditional termination. However, in your case, they’re both refusing to sign. So, what’s your other option? Assigning them to a new brokerage firm.
Paragraph 14 of the Exclusive Right of Sale Listing Agreement, titled “Miscellaneous,” contains language that could help you out of your predicament. True to its name, this section addresses a miscellaneous collection of issues, including assignment. The second sentence provides that “Broker may assign this Agreement to another listing office.”
Similarly, paragraph 11 of the Exclusive Buyer Broker Agreement, titled “Assignment; Persons Bound,” provides a nearly identical sentence: “Broker may assign this Agreement to another broker.”
An assignment is a document that enables company A to hand off its rights and obligations under these agreements to company B, which accepts those rights and obligations. It could be as formal or informal as the brokerages want, and they can always seek the help of a transactional attorney if they want to make sure the language provides maximum protection and clarity.
The forms are available on Form Simplicity.
Joel Maxson is Associate General Counsel
Note: Information deemed accurate on date of publication
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