Personal Reasons Do Not Justify Early Termination of Agency Agreements

Nov 5, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, OGH) recently considered whether an estate agency agreement could be terminated early and made clear that a person who changes their intention to sell for purely personal reasons cannot terminate a fixed-term exclusive agency agreement early for good cause.

In the case at hand, the estate agent and the landowner had entered into a fixed-term exclusive agency agreement at the property for the sale of his land. The agreement provided that a commission would be payable if the landowner withdrew without good cause.

Within days of entering into the agreement, however, the landowner decided to transfer the land to his daughter rather than sell it, thus keeping it in the family.

The lower courts found that this justified early termination of the estate agency agreement, but the OGH disagreed.

A fixed-term estate agency agreement may be terminated early for good cause if a party cannot reasonably be expected to remain bound by it. A change of intention to sell is not enough. Here, the owner simply wished to transfer the land to his daughter. That personal decision did not explain why the estate agent should be expected to accept early termination while the defendant could not reasonably be expected to honour the agreement.

The OGH therefore confirmed that changing one’s mind about selling for purely personal reasons does not generally justify early termination of a fixed-term exclusive agency agreement for good cause.

The estate agent was nonetheless not entitled to commission. As the agreement had been concluded away from the agent’s business premises, the owner validly exercised his right to withdraw under the Austrian Distance and Off-Premises Contracts Act (Fern- und Auswärtsgeschäfte-Gesetz, FAGG).

OGH 1 Ob 69/26t (27 August 2026)