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.
The Massachusetts Termination or Cancellation of Listing Agreement refers to the process and legal procedures involved in terminating or canceling a real estate listing agreement in the state of Massachusetts. This agreement is a legally binding contract between a real estate agent or broker and a property owner or seller, outlining the terms and conditions under which the agent will represent the seller in marketing and selling their property. There are several scenarios in which a listing agreement may be terminated or canceled in Massachusetts. The first is when both parties mutually agree to terminate the agreement. This may occur if the seller decides to withdraw their property from the market or if the agent is unable to fulfill the agreed-upon terms. Another type of termination is known as the expiration termination. Listing agreements typically have a specific duration, after which they automatically expire. If the property has not been sold within the agreed-upon timeframe, the listing agreement will terminate without any further action required. In some cases, a seller may choose to terminate the agreement unilaterally, even if the agent has been fulfilling their responsibilities. This is known as an owner termination and can happen if the seller is dissatisfied with the agent's performance or wants to switch to a different agent or selling strategy. On the other hand, an agent termination occurs when the agent decides to terminate the agreement with the seller. This can happen if the agent feels they are not able to effectively market or sell the property, or if the seller is not cooperative or breaches the terms of the agreement. Regardless of the type of termination, it is crucial to follow the specific provisions outlined in the listing agreement. In Massachusetts, termination or cancellation of a listing agreement may involve providing written notice to the other party, detailing the reasons for termination and any required actions or remedies. It is important to note that each listing agreement may have its specific termination or cancellation provisions, which can vary depending on the terms negotiated between the agent and the seller. Therefore, it is advisable for both parties to carefully review and understand the terms and conditions of the listing agreement before signing to avoid any potential conflicts or misunderstandings in the future.
