A real estate contract termination letter is a legal document that is signed by both real estate agent and investor or client. The main purpose of this letter is to cancel their existing contract. The writer of a letter can be a person who is interested in selling his property or it may be a property investor. Furthermore, this letter protects both parties from being a victim of future disputes.
You should take legal advice or thoroughly read the contract clause that allows premature termination, before writing this letter. Every estate has different regulations for contract termination. Some estates can accept the mutual cancellation of a contract. On the other hand, some companies may allow canceling one contract with an agent if you are willing to sign another contract with a different agent of the same company. However, you must follow a legal procedure. You may also like Real Estate Letterhead Template.
Important elements that should be included in the termination letter:
The key elements that should be included in the letter are;
- Write down the name, addresses, and contact information of all the persons involved in the contract.
- Mention the dates such as the start and end dates of the contract. End date means the contract expiry date.
- Most importantly, state the reason that why you are canceling the contract. The reason must be genuine and according to the contract’s particular clause.
- Also, state that either an eviction notice is applicable or not.
- You can also mention some guidelines to prevent the termination from happening.
Steps to writing the real estate contract termination letter:
Writing the termination letter is not easy especially for those who are new in the real estate industry. Here are some steps that will help you in writing the termination letter; You should also check Rental Property Management Template.
Firstly, write down the sender and receiver addresses. If you are going to send the letter as a printed copy then you have to write the sender’s address date followed by the receiver’s address. On the other hand, if you send a letter via Email then there is no need to write addresses and dates. The only thing you have to do is to type the subject.
The next step is to start a letter through salutation, as it is a formal letter so you should use a formal salutation. For example, you can use the salutations such as Dear Sir/Madam, hello, etc.
In the first paragraph i.e. an introduction paragraph, emphasize what the letter is all about. Explain why you are writing this letter and what the reason behind the termination is. Be concise and straightforward.
In the next paragraph in the body of a letter where you have to explain the reasons in detail. Furthermore, explain your reason by providing facts, figures, and a clause reference.
In the end, conclude your letter by stating the important key points you discussed in the body. After that, provide your contact information and affix your signature. You may also see Rent Increase Letter.
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In conclusion, a real estate contract termination letter prevents the parties involved in the contract from future litigations. This letter makes your exit professional and legal.