A Pennsylvania couple who tried to fire their buyer’s agent remained tied to a one-year exclusive agreement, according to a July 22 report. Kirsten Ganas and Austin McCarley signed the agreement at their first home tour. When they later sought another agent, the brokerage offered reassignment, a referral arrangement, or an early-termination payment. The contract reportedly included a percentage-based commission plus a $995 fee that could still apply if they purchased during the agreement term.
The dispute highlights a broader challenge for brokerages nationwide. Written buyer agreements are now routine, but cancellation rights, release procedures, and surviving compensation obligations still vary by contract and state law.
Why buyer cancellation is a national brokerage issue
Since Aug. 17, 2024, an MLS participant working with a buyer has generally needed a written agreement before an in-person or live virtual home tour. Under NAR’s written-agreement policy, the contract must clearly define compensation, prevent the broker from receiving more than the agreed amount, and disclose that commissions are negotiable. Contract length, exclusivity, cancellation rights, and termination fees remain negotiable, subject to state law.
State requirements vary. California generally limits individual-buyer agreements to three months and requires renewals to be separately signed and dated.
Oregon agreements must disclose exclusivity, compensation, both parties’ termination rights, and the supervising principal broker’s contact information. The maximum term is 24 months, including renewals.
Ohio law requires a written agreement before an agent makes a residential purchase offer for a buyer. The agreement must state its expiration date and compensation terms, among other disclosures.
When firing an agent does not end the contract
The Pennsylvania agreement bound the buyers to the brokerage, allowing the broker to offer reassignment instead of a release. Under the state association’s standard buyer agency contract, neither party has an automatic termination right unless one is negotiated.
Ending contact with an agent does not necessarily end the buyer’s contractual compensation obligations. California regulators similarly warn that ending the working relationship may not eliminate what the buyer owes unless the agreement contains an exit clause or the broker provides a release.
Contracts may also include protection periods covering properties introduced before termination. Brokerages should define the period, covered properties, and any surviving compensation obligation in the agreement or release.
What brokerages should audit in their agreements
State-licensed counsel should review brokerage forms and release procedures, especially for multistate firms. The audit should cover:
- Duration and renewal: Use clear beginning and expiration dates. Consider whether long default terms are appropriate for new or portal-generated leads.
- Exclusivity and compensation: Explain when compensation is earned, who may pay it, and whether administrative, retainer, or termination fees apply.
- Exit rights and protection periods: State who may cancel, how notice must be delivered, and which obligations survive termination.
- Broker contacts and escalation: Give buyers a direct route to a managing broker who can review complaints and approve releases or reassignments.
As a risk-management practice, a written release can document the termination date, surviving fees, and protected properties. It can also state whether the buyer may engage another brokerage.
When a buyer asks to cancel
The managing broker should review the contract, service record, and complaint before approving a release, reassignment, protection period, or contractually supported payment. Agents should not promise buyers they can “walk away anytime” unless the agreement says so. The Close’s buyer broker agreement guide explains the terms agents should review with clients before signing.
Providing the agreement before the showing gives buyers time to review its compensation, duration, exclusivity, and exit terms. A structured buyer presentation can help agents explain representation and compensation before the home search begins.
Brokerages should document who can approve a release, what obligations survive termination, and how quickly buyers receive a decision. A buyer who asks to change agents should receive a clear written answer — not discover the exit terms only after the relationship breaks down.