What does your contract with your real estate agent say? That's what's important here. I'm guessing that it says that if you end up getting a renter during the contract period, you need to pay them a real estate commission on that rental. I think that is what your agent is implying (ie, you can't just "take the house of the market" and avoid paying commission), but again, it would be dependent on what is actually in your contract.

Great question. Actually, they crossed out the rental closed and wrote n/a (I'm not even sure why). Also, there is no termination clause. I should add, this agency also manages our STR activity forf this townhouse, although its a different department, and we've always had a great relationship with them.

It's not the termination clause that would apply. It's the "when a commission is owed" provisions. Obviously you can't just "terminate" randomly, as if that were the case, you could find a buyer and then just terminate the agreement without paying them commission. Again, I think this is their way of telling you that you can't just find a renter and not pay them a commission. BTW, I am a NY lawyer who has done some real estate work, but am not specifically a real estate attorney. But without actually understanding the individual contract, there is no way of knowing the answers you are looking for.

I was a realtor in Upstate NYS for 10 years. Different companies have different rules. Yes, a contract is legally binding, but I always told my clients (with my broker's blessing,) that they could get out of the contract if I wasn't doing my job right. Never had it happen. But, I would say to scrutinize your contract as SAS said. Look for an escape clause. Most likely there isn't one you can use ("my house isn't selling" won't work since it just was listed and any realtor can point to the days on market statistic as a reasonable time frame to sell.) I think it is worth going back to your realtor and telling your situation. You should offer commission on the rental and offer to pay for any marketing materials they have spent money on (photos, brochures...) Depending on your outcome, you may have to commit to using them when the renters leave.

ETA: Was typing while SAS replied. A real estate attorney may be helpful, but offering to pay upfront costs and a commission (one month's rent is typical in upstate NY) may do the job.

I found this online:

You Cannot Sell the House Privately or with another Agent within the Timeframe of the Listing Agreement

No one can force you to sell a home. But if you have already signed a contract with an agent and then changed your mind, you cannot sell the property for the time mentioned in the agreement.

Yes, your property will be withdrawn from the listings, but that does not free you from the contract. If you truly have no intention to sell your home, simply abide by the listing agreement and wait it out for the term stated.

I would think that as long as you aren't SELLING your property to someone else, they can't force you to do much. They could theoretically force you to keep it listed as "for sale" on the MLS but I would imagine you could just decline any showings / open houses / offers so it would be kind of pointless for them to do that.

I agree with Beagles, you might not be able to break the listing contract but they can't force you to show the house or sell it.

There are probably commission protections in the contract for the agent if you sell it during the original contract term or shortly after. That's to protect against a seller waiting for the contract to end or expire to avoid paying a commission.

Were it me, I would basically tell the agent "If you are difficult about this, I'll rent the house out anyway, keep it listed for the 12-months but decline showings and won't sell at any price. But if you are understanding, we can take it off the market and I'll commit to re-listing with you when I am actually ready to sell." And I'd offer to pay back whatever might have been spent on marketing.

I have no specific knowledge but it would seem to me you can rent it and keep it on the market at the same time, for anyone willing to buy with a delayed closing.

I would probably take the same tack as beagles. It is in the agent’s best interest to work with you. But first read your contract thoroughly and carefully. It ought to be written in plain language. Did you initial the clause that was marked out? What did that clause say? Was it pertinent to this situation?

The lesson here ... never sign a 12 month contract. I rarely go over 90 days on a RE contract and will do 90 day renewals if needed. No one should be able to hold your life and property hostage.

I lagged with Mtn. With what is going on in the world today, it might take a while to sell.

Thanks all. Actually, when they reminded us we signed a twelve-month contract, my reaction was, "What??!?" I was shocked it was that long. We signed the contract six days after my mother died, and much of the discussion/prep was being done while she was in the hospital. I'm assuming that's why I missed this. I'm usually the one, of the two of us, who dots the i's and crosses the t's.

Bestyears, it is easy to miss, specially with what you were dealing with at the time. We were looking at selling a house at one time and an acquaintance, who is a realtor, said she might have a very interested buyer and could she show it to them. She filled out a listing contract for that one buyer, but put in an expiration date 6 months out! I crossed that out and put in 2 months, because we weren't planning on listing with anyone before that time. And this was a "friend" and even she was trying to tie up our property with her contract. We did not pick her when the time came to list the property!

Would your renters object to a showing or two? I am not sure why you can't do both. As stated it could take you some time to sell. How many showings have there been? I would let the renters move in and see how this goes. Even if a buyer were found, getting to closing takes time. How many months into this contract are you? Does your contract say in the 12 months you will have the property available 24 7 for showings? Seems like there is some wiggle room.

There have been about six showings since we signed the contract. Apparently, VRBO business is up all over the country, and our place is renting really well right now (in fact, it's booked every day in August). We told the agent right up front that we would never consent to showings while STR'ers are in the property, so they can only do it between renters right now. We can certainly ASK the potential lessee to agree to this, but I'm concerned that that ask, along with the possibility of us selling the place, may cause them to change their minds. The contract just specifies that we make the property available for showings.

If I were the renter, I wouldn't be too thrilled with the idea of house showings, esp. with covid concerns. I like Beagles' idea above. Also, I think that considering the stress you were under at the time you signed, she should absolutely let you off the hook.