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 Michigan, the Termination or Cancellation of Listing Agreement refers to the process of ending a contractual agreement between a real estate agent (or broker) and a property owner, where the agent was originally hired to sell or lease the property. This termination or cancellation can occur in various circumstances, allowing the parties involved to dissolve the agreement if certain conditions are met. There are different types of Termination or Cancellation of Listing Agreements that exist in Michigan, including: 1. Expiration of Agreement: A listing agreement may have a specific expiration date mentioned within it. Once this date is reached, the contract comes to an end automatically, and the parties are released from their obligations. 2. Mutual Agreement: The property owner and the real estate agent may mutually agree to terminate the listing agreement before its expiration date. This can be due to various reasons such as a change in circumstances, disagreement on marketing strategies, or dissatisfaction with the agent's performance. 3. Termination by the Agent: In some cases, the real estate agent reserves the right to terminate the listing agreement if the property owner fails to fulfill their obligations. This might include unwillingness to make necessary repairs, refusal to cooperate with marketing efforts, or disclosing misleading or false information about the property. 4. Revocation by the Property Owner: The property owner can revoke the listing agreement unilaterally if they are dissatisfied with the agent's performance or wish to change their representation. However, it is essential to review the terms and conditions of the agreement to ensure that any contractual obligations or repercussions associated with the termination are understood. 5. Performance of Agreement: If either party fails to fulfill their contractual obligations, such as not adhering to agreed-upon marketing strategies or breaching the terms of the listing agreement, the other party may have the right to terminate the agreement. Regardless of the type of termination or cancellation, it is highly recommended that both parties consult legal professionals or refer to the terms of the listing agreement to ensure compliance with the law and prevent potential disputes. It is also important to note that the specific rights, obligations, and procedures for terminating or canceling a listing agreement in Michigan may vary, so it is essential to seek advice that aligns with the state's regulations and guidelines.
