Can I Cancel a Listing Agreement With My Realtor in Alberta?

Sometimes a listing does not go the way you hoped. The communication is poor, the marketing is thin or the relationship has simply broken down. You may wonder whether you are stuck until the listing runs out.

The honest answer is that it depends on your contract. This article explains what to look for, how to approach the conversation, and what money could still be owing if you end the listing early.

This article covers the law of Alberta.

Start with the contract you signed

A listing agreement is a contract, so the first step is to read it. Look for a clause that deals with ending the listing early. Some contracts allow it by written notice, some allow it by mutual agreement, and some set conditions or charges.

• The listing term and the date it ends.
• Any clause on early termination, and how notice must be given.
• Whether the commission is still payable if the home sells during the term or after it.
• Any holdover clause that applies after the listing ends.
• Whether any fees or costs are payable if you cancel.

If you cannot find an early-ending clause, that does not necessarily mean you have no options, but it does mean you should get advice before acting.

Talking to your realtor and the brokerage

Many early endings are settled by a conversation, not a dispute. Start by telling your realtor, in writing, what is not working. Sometimes the problem can be fixed, such as better communication or a new marketing plan.

If that does not help, ask the brokerage whether it will agree to release you from the listing. Brokerages sometimes agree, particularly if the relationship has clearly failed. Any agreement to end the listing should be in writing and should say what happens to commission and any holdover.

Your realtor has duties to you. A seller's licensee must disclose to the seller, in a timely manner, all relevant facts affecting the transaction that the licensee knows of. If you believe your realtor has not met a duty, write down what happened and when, and raise it with a lawyer.

What commission or costs could still apply

This is where contracts differ most. Whether you could still owe commission or other costs after cancelling depends on the wording of your listing contract and on when and how the home sells. How this applies depends on your situation, so it is worth confirming with a lawyer.

If you plan to list with a new brokerage, ask whether the old listing has been ended in writing first. Two brokerages claiming commission on the same sale is a problem worth avoiding.

If it becomes a dispute

If you and the brokerage cannot agree, a lawyer can review the contract and tell you where you stand. Keep copies of the contract, emails and anything you were told about marketing.

Time limits can matter. Under the Limitations Act, a claimant must seek a remedial order within 2 years of when they knew or ought to have known of the injury, that it was caused by the defendant's conduct, and that a proceeding is warranted. Claims are also barred 10 years after the claim arose, but that 10-year period is suspended while the defendant fraudulently conceals the injury. The limitation periods are also suspended while the claimant is a person under disability. An agreement that reduces a limitation period is invalid, so a contract cannot shorten the time to sue. Whether and how this applies to your situation is something a lawyer can confirm.

What to do next

• Read your listing contract and mark the termination, commission and holdover clauses.
• Write down your concerns and send them to your realtor.
• Ask the brokerage in writing whether it will release you.
• Do not sign with another brokerage until the old listing is clearly ended.
• Keep records of all communication.
• Speak with a lawyer before you give notice if the contract is unclear.

Frequently asked questions