How to Terminate an Agency Agreement

Written by trudie longren
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How to Terminate an Agency Agreement
Agency agreements are commonly employed in the purchase or sale of a home. (home sweet home image by David Dorner from

Agency agreements are used in legal transactions as a means for an authorised party to act on behalf of another. During the sale or purchase of a home, a buyer or a seller will often use an agency agreement to authorise an agent, usually a real estate broker, to enter into a binding contract to purchase or sell real property. Situations may arise when either the agent or the principal (the person giving authority to an agent) may wish to terminate an agency agreement. There is specific protocol that must be observed in order to legally terminate an agency agreement.

Skill level:


  1. 1

    Perform all of the duties set forth in the agency agreement. The most common way to terminate an agency agreement is for the agent to carry out all duties assigned by the principal. Following completion of all duties, unless the principal expressly provides otherwise, the agent-principal relationship ends.

    How to Terminate an Agency Agreement
    An agency agreement terminates when all duties of an agency agreement are completed. (contract image by Valentin Mosichev from
  2. 2

    Revoke the agency agreement. Speak with the agent and state that the agent is no longer authorised to act or give written notice to the agent that the legal agency period has ceased. Comply with any provisions of the agency agreement that require notification of revocation by the principal within a specified amount of time, for example, within 30 days.

    How to Terminate an Agency Agreement
    An agency agreement can be terminated by notifying the agent. (serious talk image by Ivanna Buldakova from
  3. 3

    Renounce duties under the agency agreement. Stop performing duties as an agent and notify the principal, verbally or in writing, that the agreement has been terminated. Be sure to comply with any terms within the agency agreement that may require notification (in writing or otherwise) within a specified amount of time.

    How to Terminate an Agency Agreement
    An agent can terminate an agency agreement by ceasing to perform duties. (stop image by Jacques PALUT from
  4. 4

    Comply with the provisions of the agency agreement to terminate the agent-principal relationship. Most written agency agreement will give the specific steps to be taken to terminate the agreement. Compliance by agent and principal with each step results in the automatic termination of the agency agreement.

    How to Terminate an Agency Agreement
    Written agency agreements have provisions specifying how to terminate the agreement. (real estate contract image by Keith Frith from

Tips and warnings

  • Confirm any verbal communication in writing to avoid misunderstandings about the termination of the agreement.
  • Consult an attorney to understand all legal implications for terminating an agency agreement.

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