Does my agent still owe me duties if the deal falls apart before closing?
Yes. Your agent's duties to you under REBBA and the Code of Ethics do not disappear because a deal fell through before closing. The fiduciary relationship created by your listing agreement continues for the duration of the listing period and applies to everything your agent does in connection with the listing — not just to successfully completed transactions.
If your deal fell apart due to a failed condition, your agent continues to owe you duties of care, confidentiality, and loyalty as you relist or evaluate new offers. If the deal failed because of something the agent did — misrepresentation to the buyer, failure to present offers in a timely way, or unauthorized disclosure of confidential information — those are potential grounds for a RECO complaint and possibly a civil claim for damages.
Your agent's commission entitlement on a failed deal is a separate question from their ongoing duties. Most listing agreements only entitle the brokerage to a commission if the transaction completes. If the deal falls apart during a valid condition, no commission is generally owed. If a buyer defaults on a firm deal, entitlement depends on the agreement's specific language. A lawyer can help you assess both the duty question and the commission question together.
Key takeaways
- Agent duties under REBBA continue throughout the listing period, regardless of whether a deal completes
- Confidentiality, loyalty, and care obligations apply to all aspects of the listing, not just completed sales
- Commission entitlement on a failed deal depends on the listing agreement's specific language
- Consult a lawyer if you suspect agent misconduct contributed to a deal falling apart