TAR 1503 Termination of Buyer Tenant Representation Agreement

Expert Guide: How to Properly Terminate Buyer Representation Agreements in Texas

TAR 1503 Termination of Buyer Tenant Representation Agreement is designed to be used to terminate a buyer/tenant representation agreement before the expiration of the term. Buyer/tenant representation may be terminated by other means, such as amending the termination date.

As a licensed real estate professional in Texas, it is important to understand the process of terminating a buyer or real estate representation agreement in Texas. Additionally, it is crucial to confirm prior agency relationships before providing any services to a potential client. 

Terminating a buyer representation agreement in Texas involves following the terms of the agreement itself. If the agreement has expired, the parties can simply go their separate ways. However, if the agreement is still active and one party wishes to terminate it, they must provide written notice of the termination to the other party. This written notice can include the reasons for the termination and the effective date of the termination. 

It is important to note that a notice of termination is not a TREC Texas Real Estate Commission Promulgated Form and must be provided or approved by the broker. The Texas Association of Realtors provides a form that its members can use, but that form is not available to the general public unless you are retaining the services of a Texas Realtor. Therefore, it is recommended that parties seeking to terminate a buyer or real estate representation agreement in Texas consult with a licensed real estate broker or Realtor to ensure that the proper forms and procedures are followed. By doing so, they can avoid any potential legal issues and ensure a smooth termination process.

TXR 1503 Termination of Buyer/Tenant Representation Agreement or TXR 1505 Amendment to Buyer/Tenant Representation Agreement could be used by a REALTOR when terminating a relationship with a client. 

In both cases, it is important to remember that the license holder should not suggest how the existing agency relationship should be terminated. The license holder may need to advise the principal that they may be obligated under a prior agreement and should seek the advice of counsel to properly terminate the agreement.

Additionally, it is important to confirm prior agency relationships before providing any services to a potential client. If a principal approaches a license holder and informs them that they have an existing exclusive agency relationship with another broker, the license holder should not provide any services until confirmation that the prior agency relationship has been terminated. This can be done by asking the principal for written confirmation of the termination or by contacting the other broker directly.

If you are retaining the services of a real estate agent and have questions about terminating a buyer's representation agreement, it is recommended that you consult with the sponsoring broker of that real estate agent. The sponsoring broker can provide guidance on the proper procedures and forms for terminating the agreement and can help ensure a smooth and legal termination process. 

In conclusion, terminating a buyer or real estate representation agreement in Texas requires following the terms of the agreement and providing written notice of termination. Prior agency relationships should always be confirmed before providing any services to a potential client, and license holders should avoid suggesting how existing agency relationships should be terminated. By following these guidelines, license holders can ensure that they are providing the best service possible to their clients.

Keywords: real estate, Texas, buyer representation agreement, real estate representation agreement, termination, written notice, agency relationship, exclusive agency, confirmation, license holder.

According to the terms of the Texas Association of REALTORS’® (TAR) End User License Agreement (EULA), any display of TAR forms on a website must be behind a firewall or similar filtering software (i.e. username and password protection). Displaying TAR forms without this protection is a violation of the EULA. The use of watermarks over the TAR forms in lieu of “a firewall or similar filtering software” does not satisfy the requirements of the EULA.

In part, the EULA states: “… you are authorized to use the Blank Forms in real estate transactions in which you represent a party and/or in your personal real estate business. You are further authorized to make Blank Forms available to your clients, or parties to a real estate transaction in which you represent a party, on your or your real estate company's website, extranet, or similar site that is behind a firewall or similar filtering software, provided however, you ensure any of the Blank Forms are not accessible by members of the public who are not your clients, or who are not a party to a real estate transaction in which you represent a party, through use of a public uniform resource locator ("URL") without additional security features, such as a password” (emphasis added).

The authorization to use TAR forms is restricted to real estate transactions in which you (REALTORS®) represent a party, or in your personal real estate business. Therefore, even if TAR forms have been removed from publicly-accessible areas of a website, TAR forms should not be given to members of the public who are not your (REALTORS®) clients, or who are not a party to a real estate transaction in which you represent a party.