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Real Estate Contract Termination Letter | 5 Best Samples

The real estate industry is, by far, one of the best and most lucrative businesses in the world. Also, it’s the kind of business that participants invest their huge capital for a better gain. However, if the deal isn’t flowing as intended earlier, investors are often obliged to pull out. Usually, the investor/client will talk to the real estate agent or company about their intentions to pull out of the deal. But pulling out without any justifiable reason may attract stringent consequences.

The Real Estate Contract Termination Letter refers to an official document an individual writes to cancel their existing contract with a real estate agent or company.

Therefore, the client should always issue a real estate contract termination letter to make an exit legal and professional.

The individual in question can be a homeowner who is interested in selling their property, or it can be a property investor. When terminating such contracts, a Real Estate Contract Termination Letter will help save you from being a victim of future litigations.

Before a client terminates a real estate contract, it’s often advisable that they first seek legal advice or interpretation of the contract clause that permits premature termination. Usually, most real estate agents/companies do have a different set of policies regarding contract termination. While some will accept a mutual cancellation of a contract, others will simply not buy this idea. Another company will also allow clients to terminate one contract with a specific agent if they are willing to sign another with the same company but with a different agent. Therefore, depending on the state or country you operate, it’s important that you follow the due legal procedure.

Key Elements of Contract Termination Letter

Following are the key details to consider when writing the real estate contract termination letter:

  • The details of the persons involved in the contract. These include the name, address, and contact information, among others.
  • The start and end dates of the contract. The end date should be the contract’s expiry date.
  • The reason as to why you are terminating the real estate contract. Note that the reason should be genuine and conform to a specific clause.
  • Mention whether an eviction notice is applicable or not.
  • Any step the other person can take to prevent the termination.

How to Write a Termination Letter

For many, writing a Real Estate Contract Termination Letter may present varied challenges. This is particularly true for the newbies or those new in the real estate industry. All the same, the following are easy steps you can follow when writing your letter.

Input the addresses

If you plan to send your letter as a printed copy, you need to write the sender’s address, date followed by the recipient’s address. However, if you send an electronic letter (email), you will ignore the addresses and the date. Instead, you will simply add a subject.

Input proper salutation

Since the Real Estate Contract Termination Letter are formal letters, you must use a formal salutation. For instance, you can use Dear Sir/Madam, or Hello.


In a few sentences, you need to explain to the reader what the letter is all about. Let them know that you are writing the letter to cancel the existing real estate contract with them. Be brief and straight to the point.

Body paragraph

In this step, you will explain your reasons in detail. Provide facts, figures, and a clause reference that back your termination reasons.

Conclusion paragraphs

The conclusion should reinstate the important points covered in the body. This will help emphasize your reasons to make sure the reader understands the right of your matter.

Again, if there are any other terms and conditions you wish the reader to know, be sure you mention in this paragraph. Plus, you can provide your contacts for a call of action. Conclude your letter by appending your signature and name.

Real Estate Contract Termination Letter Sample

[Name of the sender]
[Address of sender]
[City, State, and Zip code]


[Name of receiver]
[Address of the receiver]
[City, State, Zip code]

Subject: Termination of the real estate contract

Dear Mr. /Mrs. [The recipient name],

Please receive this letter as a formal cancellation of the real estate contract that I entered with you on [mention the dates] to sell apartment number 1212 located at the above-mentioned address.

Over the previous year, you have not shown the apartments, which allows me to terminate the contract according to the termination clause. Pursuant to this clause, therefore, I will reassign the responsibility to another trustable real estate agent.

In that regard, I urge you to sign the termination letter and send it back to me in two weeks’ time. If you have any other questions or concerns, please don’t hesitate to reach me at +515 525 515 or [email protected]


[Your signature]

Monroe Kelly

Added list of enclosures: signed termination document.

Free Templates

Following are free editable contract termination letters for real estate templates:

Real Estate Termination Form Sample

Notice of Termination of Rent Agreement Sample

Apartment Lease Termination Letter Sample

Real Estate Agent Termination Letter

Sample Real Estate Contract Termination Letter

Real Estate Termination Letter

    Important Tips to Remember

    Here are a few quick tips to always remember while writing a contract termination letter:

    • Always ensure that you recheck o the termination clause on the contract before writing the letter. This will help you understand whatever necessary, hence staying on the legal course.
    • Make sure you expound on the reasons why you want to terminate the contract. Your reasons should be legitimate and valid.
    • In case your main reason is a breach of contract, be sure to explain in detail what exactly happened. Also, you need to cite the clauses which were breached by the other party.
    • Use polite and professional language. Refrain from using vulgar, irrelevant, or violent language as this may impact negatively on the contract termination letter.

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