Selling a home is a major decision, and sometimes circumstances change after you have signed a listing agreement with a real estate agent. If you are a homeowner on Oahu who is considering canceling your listing contract, it is important to understand what that process looks like and what your options are under Hawaii law.

A listing agreement is a legally binding contract between you and your real estate brokerage. It gives the agent the exclusive right to market and sell your property for a specified period of time. In Hawaii, most listing agreements run for six months to one year, though this can vary based on what you negotiate with your agent.

If you want to cancel, the first step is to review the terms of your listing agreement carefully. Most contracts include a cancellation clause that outlines the process and any potential penalties. Some agreements allow for cancellation with written notice and a reasonable period for the agent to wind down marketing efforts.

Common reasons sellers want to cancel include a change in personal circumstances such as a job transfer falling through, dissatisfaction with the agent's marketing efforts, a decision to rent the property instead, or a change in the local market that makes selling less attractive.

In many cases, your agent and brokerage will work with you to find a resolution. If you are unhappy with the service, a good agent will want to address your concerns rather than hold you to a contract. However, if the brokerage refuses to release you, you may need to wait until the listing agreement expires or negotiate a mutual release.

Be aware that if you cancel and then sell to a buyer who was introduced to your property during the listing period, you may still owe the agent a commission. This is known as a protection period or tail provision, and it is standard in most Hawaii listing agreements.

Before signing any listing agreement, Kristy and Austin Home Group recommends discussing the cancellation terms upfront so there are no surprises. We believe in earning your business every day, and we are always willing to have an honest conversation about what is working and what is not.