As a professional, it`s important to note that understanding the legal jargon of real estate agreements is crucial for both agents and clients. One such agreement is the listing agreement, which outlines the terms of the relationship between a seller and their real estate agent.
Listing agreements typically have a set expiration date, but there are occasions where the agreement can end prematurely. In this article, we will discuss the different events that can terminate a listing agreement except for one.
1. Expiration Date
The most common way a listing agreement can end is through its expiration date. The agreement will state when the contract ends and after that date, the agent is no longer the seller`s representative.
2. Mutual Agreement
If both parties agree that the agreement isn`t working, they can terminate it through a mutual agreement. This can occur for a variety of reasons, such as the seller deciding to take their property off the market or if the agent is unable to effectively market the property.
3. Breach of Contract
A breach of contract occurs when one party fails to fulfill their obligations outlined in the agreement. This can include the agent not properly marketing the property or the seller refusing to pay the agreed-upon commission.
4. Death or Incapacity
If the seller or agent dies or becomes incapacitated, the listing agreement is automatically terminated.
5. Destruction of Property
If the property is destroyed before the sale can be finalized, the listing agreement is terminated.
If the seller declares bankruptcy, the listing agreement is terminated.
There are many ways a listing agreement can end, but one event that doesn`t terminate the agreement is the sale of the property. Even after the property is sold, the agent is entitled to their commission as per the terms of the listing agreement.
In conclusion, it`s important to understand the various events that can prematurely terminate a listing agreement. It`s imperative to read the agreement thoroughly before signing and to consult with a lawyer if necessary. This will ensure a successful and transparent real estate transaction.