How can a broker-owner agency relationship be terminated without liability?

A broker-owner agency relationship can be terminated without liability through mutual agreement because both parties involved— the broker and the property owner—can negotiate and decide together to end the relationship. This consent-based approach ensures that both parties' interests are respected, and it minimizes the risk of legal disputes or claims for damages that could arise from an unagreed termination.

Terminating an agency relationship by mutual agreement allows for a clear understanding of each party’s rights and responsibilities, often including provisions on how any ongoing obligations will be fulfilled. Unlike unilateral decisions, which can lead to claims of breach of contract or disputes, mutual agreement reflects a collaborative approach, fostering goodwill and the potential for future interactions or business.

Other termination methods, such as administrative orders or legal mandates, typically involve actions by third parties or governmental entities that may not consider the interests or intentions of both the broker and the owner. Unilateral withdrawal, where one party decides to terminate the relationship without the other’s consent, could expose that party to potential liabilities, including breach of contract claims.