Cancellation of Listing Agreement

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December 19th, 2016

Cancellation of Listing Agreement

  Question: Before I signed a six-month listing agreement for the sale of my Peoria home, I had a telephone conversation with my real estate broker. Both of us were in Arizona. In this telephone conversation my real estate broker said that, although his office policy required a written six-month listing agreement, I could verbally cancel this six-month listing agreement after thirty days. I recorded this telephone conversation without my real estate broker’s knowledge. When I decided after thirty days that I really disliked this real estate broker, I told him to cancel the listing agreement. He refused to cancel my listing agreement, and he denied having the telephone conversation with me. When I told my real estate broker that I had recorded this telephone conversation, my real estate broker said that recording a telephone conversation without his permission is illegal in Arizona. Is my real estate broker right?

  Answer: No. One party to a telephone conversation between two people in Arizona can record that telephone conversation without the consent of the other party. A.R.S.§ 13-3012(9). Therefore, if you now want to cancel the listing agreement after only thirty days, the recording of this telephone conversation with your real estate broker should be evidence that is admissible in court (or at an arbitration hearing, as arbitration is required by most listing agreements).

  Note: The admissibility and legality of the recording of telephone conversations in other states like California are subject to more stringent requirements than Arizona.

Published in Real Estate Agency Law, Real Estate Contracts