Suspended Listing
Question:
The Owner has suspended his listing with Agent A and no longer wishes to work with him. He is now interested in working with Agent B. However, the existing listing agreement with Agent A remains in effect until June 202x, another three months. What are the guidelines governing the owner’s ability to work with Agent B under these circumstances?
Answer:
It’s important to appreciate that the contract is still in force. Any direct dealings with an Owner by another agent would constitute interference with that contract.
So, the first question would be: “how did you hear about it?”. The agent could not initiate contact.
However, the Owner/Seller might reach out. Here the second Agent B might have been on the short list for the listing in the first place, but the Owner selected Agent A.
In this situation, Agent B should indicate that they cannot continue their conversation due to the possibility of “contractual interference” and therefore that Owner should contact their own lawyer in respect to their rights concerning early termination.
Brian Madigan LL.B., Broker