Can You Change Realtors After Making an Offer?

Real estate transactions involve significant financial commitments, with the buyer-agent relationship being central. Even after an offer is submitted, circumstances may lead a buyer to consider changing representation. Understanding the implications of such a decision is important for navigating property acquisition.

Understanding Your Buyer Agency Agreement

The relationship with your real estate agent is founded on a buyer agency agreement, which binds you to an agent for a specified period. Common types include an exclusive right-to-represent agreement, preventing work with other agents or independent property searches during the term. A non-exclusive agreement offers more flexibility, allowing work with multiple agents or unrepresented purchases.

Agreements include clauses on duration (often a few months to a year), the agent’s duties (property searches, negotiation, closing assistance), and protection clauses. Protection clauses may entitle the original agent to a commission for properties shown, even after agreement termination.

Termination clauses specify conditions for ending the agreement, often requiring written notice within a certain timeframe. Some agreements may include penalties for early termination or outline events leading to automatic termination. Understanding your signed agreement’s terms is important, as it dictates the process and financial obligations if you switch agents.

Impact on Your Active Offer

An offer’s status and validity are important when changing real estate agents. An active offer is tied to the buyer, not the agent who submitted it. The offer remains valid and binding unless it expires, is withdrawn, or is rejected.

Changing agents can introduce communication challenges during negotiation. The new agent must be introduced to the seller’s agent for seamless communication regarding offer progress, counteroffers, or acceptance. The new agent might need to re-submit the offer or an addendum to reflect the change in representation.

A lapse in communication during transition could delay responses or cause misunderstandings, jeopardizing the offer. All parties, including the seller’s agent and seller, must be aware of the change to maintain clear communication. This continuity prevents any appearance of a lack of buyer commitment.

Steps to Transition Real Estate Agents

Transitioning to a new real estate agent involves a formal process. The first step is formally terminating your existing buyer agency agreement in writing. The notice should state your intention to terminate and reference relevant agreement clauses.

Adhere to any notice periods or requirements in the contract to avoid breaches. After addressing the previous agreement, select and engage a new agent. This new agent will require a new buyer agency agreement, outlining their responsibilities and terms.

Upon engaging a new agent, communicate this change to all relevant parties. This includes informing the seller’s agent, and the seller if direct communication occurred, about your new representation. Your new agent will handle formal notification to the seller’s agent, ensuring future communications regarding the active offer are directed appropriately.

Protecting Your Interests

Safeguarding your interests when changing real estate agents requires attention to documentation and clear communication. Maintain thorough records of all communications, including emails, text messages, and signed documents with both your former and new agents. This documentation provides a clear timeline and evidence of agreements, useful for disputes.

Commission disputes with a former agent may occur, especially if they introduced the property and it closes shortly after the change. Reviewing the protection period clause in your initial agreement clarifies if the former agent is entitled to a commission for properties shown during their representation. Proactive communication with both agents and legal counsel, if necessary, helps mitigate these issues.

Ensuring transaction continuity is important, especially for milestones like inspections, appraisals, and financing. Your new agent should quickly familiarize themselves with the transaction’s status to prevent gaps in representation that could derail the purchase. A seamless handover of information and responsibilities ensures the transaction progresses without unnecessary delays.