Some real estate agents in Texas will allow early termination of the contract, with or without reason, as a guarantee of satisfaction. But many are much stricter. A listing agreement may also allow for early termination, but the seller is charged for terminating the listing contract before the conclusion. At the end of the email, describe some potential action items, including a personal discussion about the performance of the agents and the desired end of the list agreement, or the potential to switch to another agent in brokerage. Following the above question of serious money and the termination of the contract: the big buckets to avoid termination would be: How does COVID-19 change the landscape of the termination of list agreements? Section 21 of the TREC contract stipulates that all communications from one party to another must be made in writing. TREC has announced the buyer`s “Contract Termination Notification” form to be used when a buyer helps a buyer provide the seller with the appropriate notification of the exercise of its termination option. While a buyer can use any form of written notification to terminate the contract, a buyer`s representative should be asked to help the buyer give the appropriate notification, should use the advertised form. Once the corresponding box of the form has been verified, the TREC form relating to the termination of the contract by the buyer specifies that the buyer intends to do so and that he communicates to the seller of his choice the appropriate notification of the termination of the contract in accordance with paragraph 23. While one would think that the buyer made the decision to terminate the contract as part of his termination option by sending the seller or his agent a signed form “Release of Earnest Money” showing that the serious money is unlocked to the buyer and that it indicates the release of all rights or liabilities under the contract , a court cannot agree that this letter meets the buyer`s termination requirements under paragraphs 21 and 23 of the contract.
The preferred practice would be for a buyer`s representative to use a buyer who is considering exercising the termination option in paragraph 23 of the TREC notification relating to the termination of the buyer`s contract and send the signed form to the address indicated in paragraph 21 or by fax in accordance with this paragraph. The “Publication of Earnest Money” form could be signed and included in the notification form to facilitate the seller`s execution of this form. Practical notice: The same procedure for sending the TREC communication and unlocking serious financial forms to the seller can be used when the buyer notifies the seller of the termination of the contract in accordance with a paragraph of the contract or an additional contract.