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.
Missouri 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 for the sale or lease of a property. This termination or cancellation can occur for various reasons, such as dissatisfaction with the agent's services, inability to sell or lease the property within a specified period, or a change in the owner's circumstances. In Missouri, there are different types of termination or cancellation of listing agreements that property owners and real estate professionals should be aware of: 1. Expiration: The listing agreement may naturally terminate upon reaching its stated expiration date. Typically, a listing agreement includes a specific duration, such as 3, 6, or 12 months, after which the agreement automatically expires, and the property owner is not obligated to continue working with the agent. 2. Mutual Agreement: Both the property owner and the agent/broker may agree to terminate the listing agreement before its expiration date. This could be due to a change in the owner's circumstances, such as deciding not to sell or lease the property anymore, or if the agent is not fulfilling their obligations. In such cases, a written agreement stating the termination terms should be signed by both parties. 3. Seller's Valid Termination: A property owner may have the right to terminate the listing agreement if the broker has breached a material term of the agreement. This could include actions such as misrepresentation, failing to adequately market the property, or not acting in the owner's best interest. To exercise this right, the owner must provide notice to the broker, specifying the reasons for termination. 4. Broker's Valid Termination: In certain circumstances, a broker may be able to terminate the listing agreement with the property owner. For example, if the owner fails to meet their obligations, such as providing accurate property information, failing to cooperate with marketing efforts, or attempting to interfere with the sale or lease process, the broker may have grounds for termination. It is essential for both parties to understand the terms of the listing agreement and the rights and obligations it entails. A termination or cancellation of the listing agreement should be handled carefully, and it is advisable to consult with a real estate attorney or professional to ensure compliance with Missouri laws and regulations.
