In the context of real property law, a listing agreement governs the terms of the sale of real property by a third party real estate agency or broker. A listing contract may cover issues, among others, such as the price and terms of sale, broker's commission, agency duties of a listing agent, whether or not the property will be listed with the local MLS (multiple listing service), lockbox use, and resolution of disputes.
There are at least ten ways that a listing agreement may be terminated.
" When a real estate broker successfully sells a property for their client the listing agreement is complete.
" Listing agreements are typically inclusive of a definite time frame. When this period of time is reached, the listing agreement is terminated. Automatic extensions are illegal in many states, and are highly discouraged.
" If a broker does nothing to market the property, the owner of the property may end the listing due to the brokers abandonment of the property.
" Sellers can revoke the listing agreement, however there may be damages to the broker for which the seller can be held liable.
" Brokers can renounce the listing agreement, however they may be held for damages to the seller.
" Death, insanity, or bankruptcy of either the broker or the seller will often terminate the listing.
" Destruction of the property terminates the agreement because the agreement cannot be performed.
" The listing agreement can be terminated through a mutual consent between the broker and the seller.
" If the use of the property changes significantly, the listing agreement can be cancelled.
" In the real estate market, transfer of title by operation of law can terminate the listing agreement.
In the state of Arizona, the Termination or Cancellation of Listing Agreement refers to the legal process by which either the seller or the real estate agent terminates or cancels the existing agreement between them to list a property for sale. This agreement is a binding contract that outlines the terms and conditions under which the agent represents the seller in marketing, advertising, and selling the property. There are various types of termination or cancellation options available under Arizona law, including: 1. Mutual Agreement: Both the seller and the agent agree to terminate the listing agreement based on mutual consent. This can occur if they are unsatisfied with the agent's performance, decide to withdraw the property from the market, or mutually agree to seek a different agent. 2. Expiration: The listing agreement is terminated upon its agreed-upon expiration date, as specified in the contract. Once the term lapses, the agent's representation ends, and the seller is free to explore other options. 3. Breach: This type of termination occurs when one party, either the seller or the agent, violates the terms of the listing agreement. Common breaches include failure to perform agreed-upon duties, dishonesty, or unethical behavior. The non-breaching party can terminate the agreement and may be entitled to seek legal remedies for damages incurred. 4. Performance: This termination option allows either party to cancel the listing agreement if the other party fails to meet their contractual obligations. For example, if the agent consistently fails to market the property effectively or the seller doesn't meet their responsibilities, either party can terminate the agreement due to non-performance. It is important to note that regardless of the reason for termination or cancellation, it is advisable for both parties to consult with a real estate attorney to ensure compliance with Arizona real estate laws and to handle any potential financial or legal ramifications.
