When entering into a buyer-broker agreement, both the buyer and the real estate agent agree to work exclusively with each other throughout the home buying process. However, there may come a time when either party wants to terminate the agreement for various reasons. In this article, we will discuss which of the following choices would terminate a buyer-broker agreement.

1. Expiration of the Agreement

One of the most common ways a buyer-broker agreement ends is through expiration. Typically, these agreements have a specific end date stated in the contract, after which the agreement becomes null and void. If the buyer and agent do not renew the agreement within the specified timeframe, they are no longer obligated to work with each other.

2. Mutual Agreement

Another way to terminate a buyer-broker agreement is by mutual agreement. Perhaps the buyer found a home without the agent`s assistance, or the agent is no longer able to continue working with the buyer due to unforeseen circumstances. In either case, both parties may agree to terminate the agreement early.

3. Termination for Cause

In some instances, a buyer-broker agreement may be terminated for cause. This means that one party did not adhere to the terms of the agreement and breached their obligations. For example, if the buyer did not work exclusively with the agent or if the agent did not provide the level of service agreed upon in the contract, the other party may have cause to terminate the agreement.

4. Termination for Convenience

A buyer may also terminate a buyer-broker agreement for convenience. This means that the buyer no longer wants to work with the agent for personal reasons or has found another agent they wish to work with. However, it is important to note that the buyer may be liable for any expenses or fees incurred by the agent up until the termination of the agreement.

5. Death or Incapacity

Lastly, a buyer-broker agreement may be terminated if either the buyer or the agent passes away or becomes incapacitated. This is an unfortunate circumstance that is out of the control of both parties.

In conclusion, there are several reasons why a buyer-broker agreement may be terminated. Whether it is through expiration, mutual agreement, termination for cause or convenience, or due to death or incapacity, it is important to communicate openly and respectfully with the other party. Terminating an agreement can be a difficult decision, but in some cases, it may be necessary to ensure the best possible outcome for both the buyer and the agent.