Switching real estate agents in Colorado depends on your individual listing contract and circumstances. Both the seller and the brokerage have contractual responsibilities, and a qualified Colorado real estate attorney is the appropriate professional for legal guidance about termination.
What Colorado homeowners should understand about their listing agreements
One question I hear more often than you might expect is, “How do I switch real estate agents?”
Usually, when someone asks me this question, they’re frustrated with their current real estate agent. Maybe communication hasn’t been what they expected, they’re unhappy with how things are going, or they simply don’t feel their agent is fulfilling their responsibilities.
And understandably, they’re unsure what they’re allowed to do next.
The answer isn’t necessarily the same everywhere. Real estate contracts and regulations vary from state to state, so I can only speak to how things work here in Colorado.
Understanding Colorado’s Exclusive Right-to-Sell Listing Agreement
When a homeowner hires a real estate agent to sell their property in Colorado, they typically enter into a contract called the Exclusive Right-to-Sell Listing Contract.
This is a legally binding agreement between the seller and the brokerage firm that outlines the responsibilities and obligations of both parties.
And here’s something homeowners may not realize: Both the seller and the brokerage have contractual responsibilities.
In fact, Section 19 of Colorado’s Exclusive Right-to-Sell Listing Contract addresses default and the right to cancel.
Section 19.1: If the Broker Is in Default
Section 19.1 addresses circumstances where the real estate broker fails to substantially perform their obligations under the listing agreement.
Under the terms of this section, the seller may have the right to cancel the listing contract if the broker is in default.
In everyday language, if an agent isn’t fulfilling their contractual responsibilities, the seller may have options.
However, being unhappy with an agent and an agent being in contractual default aren’t necessarily the same thing.
Section 19.2: If the Seller Is in Default
The contract also works in the other direction.
Section 19.2 addresses situations where a seller fails to substantially perform their obligations under the agreement, including failing to reasonably cooperate with their broker.
In those circumstances, the brokerage firm may have the right to cancel the listing agreement.
The important takeaway? Both parties have obligations under the contract, and both parties have rights.
Why Written Communication Matters
Something I believe strongly in, whether we’re talking about real estate or almost any other contractual relationship, is the importance of communicating in writing.
Personally, I prefer email.
Written communication creates a record of conversations, concerns, expectations, and responses. It helps everyone understand what has been discussed and reduces the likelihood of misunderstandings.
Colorado’s listing agreement also contains specific written-notice requirements when addressing cancellation under Sections 19.1 and 19.2.
That’s another reason why understanding the actual language in your agreement matters.
So, Can You Change Real Estate Agents in Colorado?
The answer is that it depends on your individual contract and circumstances.
Every situation is different, and terminating a legally binding agreement isn’t something another real estate agent should be providing you legal instructions on how to do.
Understanding your contractual rights is important, and when there are questions about termination, a qualified Colorado real estate attorney is the appropriate professional to provide legal guidance.
My biggest takeaway is this: A real estate listing agreement establishes responsibilities for both parties. Sellers deserve to understand those responsibilities, what they’ve agreed to, and what their contract actually says.
Selling your home is a significant financial decision, and a good working relationship with your real estate professional matters.
Brandy Unruh | REALTOR® | Compass
Serving Erie, Colorado, Northern Colorado, Boulder County, and the Denver Metro Area.
Disclaimer: This article is intended for general educational purposes only and does not constitute legal advice. Contract interpretation, default, and termination are legal matters. Consult a qualified Colorado real estate attorney regarding your individual agreement and circumstances.
Frequently asked questions
Can I switch real estate agents in Colorado?
It depends on your individual listing contract and circumstances. When there are questions about terminating the agreement, a qualified Colorado real estate attorney is the appropriate professional to provide legal guidance.
Is my Colorado listing agreement with my agent or the brokerage?
Colorado’s Exclusive Right-to-Sell Listing Contract is a legally binding agreement between the seller and the brokerage firm. It outlines the responsibilities and obligations of both parties.
Can I cancel my listing agreement if I’m unhappy with my agent?
Being unhappy with an agent and an agent being in contractual default aren’t necessarily the same thing. Section 19.1 addresses a broker’s failure to substantially perform their obligations, and the seller may have the right to cancel if the broker is in default.
Can a Colorado brokerage cancel a listing agreement if the seller is in default?
Section 19.2 addresses situations where a seller fails to substantially perform their obligations, including failing to reasonably cooperate with their broker. In those circumstances, the brokerage firm may have the right to cancel the listing agreement.
Does canceling a Colorado listing agreement require written notice?
Colorado’s listing agreement contains specific written-notice requirements when addressing cancellation under Sections 19.1 and 19.2. Understanding the actual language in your agreement matters.