Buyer Cancelling a Transaction Broker Agreement

Buyer Cancelling a Transaction Broker Agreement

Agents may occasionally encounter buyers who wish to cancel their Buyer Broker Agreement before the agreement expires. If your agreement includes a cancellation fee, it’s important to follow the correct steps to ensure the brokerage is protected and the agent is compensated according to the signed contract.

When a Buyer Requests to Cancel

If your buyer wants to cancel the Buyer Broker Agreement the agreement remains valid until formally terminated. Any cancellation terms listed in the agreement must be followed.

1. Confirm That a Cancellation Fee Applies

Review the executed Buyer Broker Agreement to ensure:

  • A cancellation fee is included
  • The buyer signed the agreement
  • You are still within the active agreement date range

If these conditions are met, the buyer is contractually responsible for the fee.

2. Direct the Buyer to Send the Cancellation Fee to Dalton Wade

Per brokerage guidance:

  • The buyer must send the cancellation fee payment directly to Dalton Wade.
  • The agent must then submit a CDA (Commission Disbursement Authorization) through Dotloop to have their portion paid out.

Payment Instructions for the Buyer

Provide the buyer with:

  • Amount owed (per the signed agreement)
  • Where to send payment (Dalton Wade payment instructions)
  • A reminder that cancellation is not finalized until payment is received

3. If the Buyer Refuses to Pay the Cancellation Fee

If the buyer declines to pay, you must clearly communicate the following:

  • The agreement is still active until properly cancelled.
  • If the buyer purchases a home during the time they are under contract with Dalton Wade, the brokerage will pursue commission per the terms of the agreement.

This gives the buyer an opportunity to reconsider before attempting to purchase without resolving the agreement.

Suggested Message to the Buyer

You may say something like:

“Your Buyer Agreement remains active until the cancellation fee is paid. If you choose not to pay the fee and later purchase a property during the term of this agreement, our brokerage will enforce the contract and pursue the commission owed.”

Keep the tone professional and factual.

4. Submit the CDA Once Payment Is Received

After Dalton Wade receives the cancellation fee:

  1. Create a new loop in Dotloop (or use the existing file).
  1. Upload the fully executed Buyer Agreement.
  1. Submit a CDA for your portion of the cancellation fee.
  1. Compliance will review and approve the file for disbursement.