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 New Mexico, the termination or cancellation of a listing agreement refers to the process through which either the seller or the real estate agent ends the contractual agreement for listing a property for sale. This agreement typically outlines the terms and conditions of the listing, including the duration and the responsibilities of both parties. There are a few different types of termination or cancellation of listing agreements in New Mexico: 1. Expiration of Listing Agreement: This is the most common type of termination, where the listing agreement naturally comes to an end upon reaching its agreed-upon expiration date. Once the term is completed, the agent will no longer have exclusive rights to market and sell the property. 2. Mutual Agreement: The seller and the real estate agent may agree to terminate the listing agreement before its expiration date. This usually happens when there is a change in circumstances or an amicable decision to part ways. Both parties must sign a written agreement specifying the termination terms. 3. Unilateral Termination: Under some circumstances, either the seller or the real estate agent may terminate the listing agreement unilaterally. However, it's important to carefully review the contract terms, as there may be penalties or obligations associated with early termination. 4. Failure to Perform: If either party fails to fulfill their obligations as defined in the listing agreement, such as a lack of performance or breach of contract, the other party may consider terminating the agreement. This type of termination typically requires legal consultation to assess the situation and determine the appropriate steps to take. Regardless of the type of termination or cancellation, it is important to understand the terms outlined in the listing agreement and to follow the required procedures. It is often recommended consulting with a real estate attorney or a qualified professional to ensure compliance with the applicable laws and regulations in New Mexico.
