Question:
I am suspending a listing. My Seller clients are asking for a release form? Which form would that be? Is that even needed since the suspension/cancel form is in place?
Answer:
The mutual release form is designed to deal with the end of a real estate transaction. There was no sale, so this Form is not applicable.
With the Listing you have two documented choices available:
1) Cancellation and
2) Suspension.
However, it could be that the client wants a full Cancellation, that is no holdover carrying forward. So, a complete end to the Listing. If that’s the case, then, that provision could be added to the regular Cancellation document, because otherwise the Cancellation simply ends the active Listing, but one of its important provisions, namely the holdover clause would continue.
It sounds like they have either a second agent, or private buyer lined up and ready to go now.
If the holdover clause continues for another 120 days, then they will have to wait until then in order to sell without a commission obligation. If that’s the case, they might want to negotiate something now.
The client was likely attempting the “end run” and was just trying to speed it up.
Brian Madigan LL.B., Broker