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

You signed a listing agreement, and now you are unhappy. Maybe communication is poor, maybe the marketing is not what you expected. You want out, and you are worried the brokerage will still claim a commission.

The answer in British Columbia depends heavily on what your contract says. This article explains what the rules require the agreement to contain, what they do not provide, and practical steps to take.

This article covers the law of British Columbia.

No general right to cancel in the Rules

The Real Estate Services Rules require a stated termination clause only for rental property management and strata management agreements. There is no general statutory right to cancel a listing, which is a trading services agreement, so the contract's own terms govern early termination.

That means your first task is to read your agreement. Whether you can leave early, what notice is needed, and whether any commission is claimed afterwards depend on the contract and on general contract law, and a lawyer can confirm how that applies to you.

What your agreement must contain

A brokerage providing trading services must have a written service agreement signed by the client and an authorized brokerage signatory, entered into before the brokerage represents the client in offering the property for sale. The requirement does not apply if the prospective client waives it.

• The agreement must state the expiry date.
• It must state the remuneration payable and the circumstances in which it is payable.
• Amendments must be in writing and signed by the client and an authorized signatory.
• A copy must be delivered immediately on execution.

If you never received a copy, or the document is missing these items, raise that with the brokerage and keep a record of the request.

Commission and costs that may follow

Commission is whatever your written agreement says, since the agreement must state the remuneration and when it is payable. Commission is paid to the brokerage, which pays its licensees, because a licensee must not accept remuneration for real estate services from anyone other than their own brokerage.

GST is charged at 5% on the value of the consideration for a taxable supply, and in BC the federal GST, not HST, applies to a brokerage's commission, so a 5% GST amount is added on top of the commission.

A licensee must not request or agree to remuneration based on the difference between the listed price and the actual sale price, and cannot keep remuneration calculated that way. The licensee must also promptly disclose to you all remuneration paid or payable to the licensee's related brokerage, including its source and amount. When presenting an offer to a seller, the licensee must disclose the seller's payments to the listing brokerage, payments to any cooperating brokerage, amounts retained and other licensee remuneration.

Whether remuneration is owed after cancellation, for example on a later sale, turns on the wording of your contract. Look closely for any clause dealing with sales after the agreement ends.

Options if you are unhappy

• Raise your concerns with the brokerage and ask what it would agree to. Any agreed change should be in writing and signed by you and an authorized signatory.
• Ask whether a different licensee at the brokerage could take over, and get the arrangement in writing.
• If you believe a licensee committed professional misconduct or conduct unbecoming, you may make a written complaint with particulars to the superintendent. Professional misconduct includes contravening the Act, deceptive dealing and incompetence.

A complaint is not a way to cancel your contract or recover money. The discipline process provides no damages for the complainant, and its remedies are regulatory orders. A dispute about the contract itself is a civil matter where legal advice is useful.

What to do next

• Find your signed agreement and any amendments.
• Note the expiry date, the commission terms and any termination, protection or holdover wording.
• Gather emails, texts and offers that show what happened.
• Do not sign a new listing with someone else until you know whether your current contract still binds you.
• Ask a lawyer to review the contract before you send any notice of termination.

Frequently asked questions