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Rainmaker
474,492
Bill Dandridge
MKB, Realtors - Roanoke, VA
GREEN, ABR, GRI, EcoBroker

I would not charge the sellers a fee, and I do think it is bad business. I always tell my sellers that if I do not perform to their expectations, I will certainly let them out of the contract. I want them to feel like that want me to work with them, rather that them being contractually obligated to doing so.

Of course, there is a monetary outlay that comes with listings, but that is part of the business. I imagine that you get much more business to the closing table than contracts that request a cancel.

Mar 15, 2015 10:52 PM
Rainer
279,878
Dipti Thakkar
LAER Realty Partners - Andover, MA
On a team with Praful Thakkar

Good idea.

Jul 25, 2018 11:58 PM
Rainmaker
630,251
Ajay Pandya
e-Merge Real Estate Unlimited - Columbus, OH
Realtor Ajay Pandya

I think one should!

Mar 08, 2018 10:36 PM
Rainmaker
1,139,819
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

I believe if a seller signs a contract for a certain period then they need to live up to the contract.

Mar 16, 2015 11:06 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't like cancellation fees. but i can see them being charged in some instances where the sellers have been less than cooperative in carrying out the terms on the listing agreement.

Mar 16, 2015 05:43 AM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I never charge a cancellation fee. But reimbursement for expenses is sometimes appropriate. I had a luxury listing cancel after 2 weeks (due to a family dispute about selling). I had invested in photography, advertising and mailing and requested reimbursement from my clients. They were very apologetic and had no problem reimbursing me for the expenses.

Mar 16, 2015 05:04 AM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

As long as the seller knows the fee up front, it is OK, but, I can see the backlash of people who get charged. 

Mar 15, 2015 11:50 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

IF the fee is imposed by the BROKER it is a BAD, BAD. BAD and BAD thing. But the BROKER is covered....it is the agent who will be blamed. Did I mention BROKER imposed penalties are a BAD thing?

The agent should have the option of collecting a cancellation fee based on the circumstances. If the seller HAD to change course due to circumstances beyond their control, the fee should be waived.

If collection is needed, broker should receive only the amount covered by receipts for services purchased by the broker, not the agent, for that address only. Then agent receives the balance for their costs.

Broker imposed mandatory fees is evidence of BAD policy. This will be followed by, agent must pay regardless, but can collect from buyer/seller if they can. 

Mar 15, 2015 10:47 PM
Rainmaker
90,543
Debra Peters
Referral Realty - Manorville, NY
NY Real Estate Salesperson

I would not charge a cancellation fee.  Canceled contracts are part of the business.  NEXT.

If it is a matter of your companies policy, then that's a different circumstance.

Mar 15, 2015 10:46 PM
Ambassador
6,393,404
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Have not had to deal with that one so far.

Dec 18, 2019 11:36 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Bob Publicover It's a personal choice.

If the seller intentionally does want to cancel to re-list with someone, I'd say, sure. You invested time and money to market that home - so why not?

Now if it is for personal valid reasons, I'd say, use your own judgment.

Mar 16, 2015 01:49 PM
Rainmaker
2,224,473
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I don't charge a cancellation fee. I don't think this would go over well in my market. I could see myself losing listings because of this. 

Mar 16, 2015 01:20 PM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Those charge a fee is likely to be voiced by sellers more.  How do you enforce a fee? Small claim court?

Mar 16, 2015 02:10 AM
Rainmaker
443,220
Cindy Davis
SD Home Source Realty - San Diego, CA

Cancelled listings are indeed a part of our business. I have in the bast charged a nominal fee  (up front) to compensate me for my direct cost of photos, sign placement, flyers, etc. But generally speaking, I would not charge a serious fee for cancellation.

Mar 16, 2015 01:59 AM
Rainmaker
911,338
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I never have and never will. Anyway, it would depend on the reason the seller wants to cancel the listing. If the listing agent turned out to be terrible and made several mistakes for example that a seller wanted to cancel, I couldn't see agent asking for cancelation fee even if they agred to the fee up front.

Mar 16, 2015 12:39 AM