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Q: I have an Exclusive Authorization to Sell Agreement, but my relationship with my client/owner has deteriorated. We have verbally agreed to a mutual release of the Exclusive Authorization to Sell Agreement, but my client has not yet signed the release. My client has already started to work with another broker to sell his property. At this point, can I remove my sign from the property and remove the listing from the MLS prior to my client signing the release?  

A: If the owner is actively working with another broker, then he has likely breached the Exclusive Authorization to Sell Agreement. For example, Virginia REALTORS^® Exclusive Authorization to Sell (Form 400) requires that the owner shall work exclusively with the broker during the term of the agreement. Working with another broker before the agreement is ended would be a breach of this section. The broker could terminate the agreement by sending a notice of termination and stop his efforts to market and sell the property.  

While a termination would end the agreement, it would still leave both parties open to possible claims against the other. If the broker removed his sign from the property and removed the listing from the MLS, the owner could potentially claim the broker breached his duties under the agreement to market and sell the property. While this claim should not prevail if the broker sent a valid notice of termination, a signed mutual release would provide more protection. A mutual release frees both parties of their obligations under a contract and prevents both parties from pursuing claims against the other.   

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