A seller, Ms. Kim, lists her property at 100 Cedar Dr, Surrey, with Sarah from Metro Realty. A few weeks later, Ms. Kim decides she no longer wishes to sell and asks Sarah to terminate the agency agreement. What is the most likely outcome if Ms. Kim terminates the agreement early due to a change of mind, assuming no breach by Sarah?

Question: A seller, Ms. Kim, lists her property at 100 Cedar Dr, Surrey, with Sarah from Metro Realty. A few weeks later, Ms. Kim decides she no longer wishes to sell and asks Sarah to terminate the agency agreement. What is the most likely outcome if Ms. Kim terminates the agreement early due to a change of mind, assuming no breach by Sarah?

Answer options: ✅ Ms. Kim will likely be responsible for paying Sarah's commission, or a portion thereof, as outlined in the listing agreement's termination clauses.

• The agency agreement will be terminated without any financial penalty to Ms. Kim.
• Sarah must refund any expenses she has incurred to date in marketing the property.
• Ms. Kim will be legally obligated to proceed with the sale if Sarah has already procured a ready, willing, and able buyer.

Correct answer: Ms. Kim will likely be responsible for paying Sarah's commission, or a portion thereof, as outlined in the listing agreement's termination clauses.

Explanation: In many listing agreements, there are clauses outlining the financial obligations of a seller if they choose to terminate the agreement early for reasons other than a breach by the agent. This often includes compensation for marketing expenses or a termination fee.