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.
Termination or Cancellation of Listing Agreement in Phoenix, Arizona A listing agreement is a contract between a real estate agent and a seller that outlines the terms and conditions under which the agent will market and sell the seller's property. However, there may be circumstances where either party wishes to terminate or cancel the listing agreement in Phoenix, Arizona. Understanding the process and different types of termination or cancellation is crucial for both sellers and agents. In Phoenix, Arizona, there are primarily three types of termination or cancellation of listing agreements: mutual agreement termination, expiration termination, and breach of contract termination. 1. Mutual Agreement Termination: This type of termination occurs when both the seller and the agent agree to end the listing agreement before its specified expiration date. It typically happens when the parties mutually decide that it is in their best interest to part ways. The agreement is canceled by signing a mutual release form, which relieves both parties from any further obligations. 2. Expiration Termination: An expiration termination occurs when the listing agreement reaches its predetermined expiration date without any renewal or extension. At this point, the contract between the seller and the agent are considered terminated automatically, and both parties are free to pursue other options. However, it's essential to clarify any lingering issues, such as pending offers or marketing materials that may need to be removed. 3. Breach of Contract Termination: When one party fails to fulfill their contractual obligations, a breach of contract termination can occur in Phoenix, Arizona. If the seller or the agent fails to perform as stipulated in the listing agreement, the other party may have grounds for termination. Breach of contract could include situations like non-payment of commission, failure to market the property adequately, or misrepresentation of information. In such instances, the injured party may need to seek legal advice and formally terminate the agreement. It is important to note that terminating or canceling a listing agreement in Phoenix, Arizona should always be done in accordance with the terms specified in the agreement itself. Additionally, seeking guidance from a qualified real estate attorney or consulting with an experienced agent is advisable to ensure compliance with local laws and regulations.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
