Have you signed a semi-exclusive estate agency agreement, but are no longer satisfied with your relationship with the estate agent? This type of agreement appeals to many sellers because it strikes a balance between exclusivity and freedom, but sometimes things do not go as planned… and the question of whether the semi-exclusive agreement can be terminated may arise. How can you end this contract? What exactly is the procedure to follow?
How does a semi-exclusive estate agency agreement work?
The way a semi-exclusive estate agency agreement works is based on a simple principle: a single estate agency is responsible for marketing the property, but the seller retains the right to find a buyer themselves, without having to pay a commission if they ultimately complete the sale independently.
This arrangement differs from an exclusive agreement, which prohibits direct sales, and is similar to a non-exclusive agreement in this respect only, while retaining, for the most part, the same termination formalities as an exclusive agreement.
Indeed, the contract must specify its duration, generally set at 3 months (more by convention than by legal requirement), as well as the applicable termination conditions. This period constitutes a binding period during which neither the seller nor the agency may, except in certain circumstances, terminate the agreement.
A 14-day cooling-off period after signing
Regardless of the type of agreement signed, current legislation (Hamon Law) grants private sellers a 14-day cooling-off period for the estate agency agreement from the date it is signed, provided that it was signed outside the agency’s premises: at home or electronically, for example.
During this period, the seller may terminate the agreement without having to give a reason or pay compensation. However, withdrawal must be notified by registered letter with acknowledgment of receipt, in order to have formal proof of the date on which it was sent.
Once this period has expired, the seller is formally bound by the agreement and the termination procedure for the semi-exclusive estate agency agreement applies.
Terminating a semi-exclusive estate agency agreement after the binding period: how does it work?
It should be understood that, in principle, the agreement cannot be terminated during the binding period, except in cases provided for by law or in the event of a serious breach by the agent.
Once these 3 months have elapsed, the seller may terminate the agreement. To do so, they must send a registered letter with acknowledgment of receipt to the agency, giving 15 days’ notice before the contract expiry date.
If the agreement provides for automatic renewal, the estate agent is required to notify you of this no earlier than 3 months and no later than 1 month before the renewal date. In this notification, the agent must inform you that you have the right not to renew the agreement. If this notice is not sent, you may terminate the contract at any time from the renewal date.
Terminating the agreement before its expiry: a limited possibility
Outside the cooling-off period, terminating a semi-exclusive estate agency agreement during its binding period remains difficult. The law only allows this possibility in the event of a serious breach by the agency of its obligations:
- failure to publish the property listing,
- no viewings arranged,
- failure to comply with the commitments made when the agreement was signed.
These examples are subject to the assessment of the courts: they are not set out in any specific legal provision.
However, such grounds must be capable of being demonstrated, which means keeping a written record of communications with the estate agent throughout the term of the agreement. In the absence of a proven breach, it is therefore preferable to wait until the end of the binding period rather than risk a dispute.
Semi-exclusive, non-exclusive or exclusive agreement: similar rules and significant differences
Among the different types of estate agency agreements, the non-exclusive agreement remains the most flexible: it allows several agencies to compete for the sale, and the termination of a non-exclusive sales agreement follows similar procedures, particularly a 15-day notice period after the binding period, but without the constraints of exclusivity.
The semi-exclusive agreement, by contrast, binds the seller to a single agency for the duration of the contract, except that the seller retains the right to sell the property directly.
Before signing, it is therefore useful to carefully compare the commitments associated with each option, particularly the role of the estate agent in the negotiation and the amount of the estate agency commission applicable if the sale is completed through the professional.
Plan ahead carefully before signing a sales agreement
Terminating a semi-exclusive estate agency agreement remains a regulated process, but it is possible provided that the statutory deadlines are observed. To avoid any difficulties, it is best to carefully review the termination clauses before signing, particularly the exact duration of the binding period and the renewal conditions.
