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.
The Arkansas Termination or Cancellation of Listing Agreement refers to a legal process that allows either the seller or the real estate agent to terminate a listing agreement before its agreed-upon expiration date. This agreement is a contract that establishes the terms and conditions under which a real estate agent represents the seller in marketing, advertising, and selling their property. In Arkansas, there are two primary types of termination or cancellation of a listing agreement: voluntary termination and mutual cancellation. 1. Voluntary Termination: This occurs when either the seller or the real estate agent decides to terminate the listing agreement unilaterally. The party seeking termination must provide written notice of their intent to terminate the agreement to the other party. The termination becomes effective upon delivery of the notice unless otherwise specified in the agreement. The voluntary termination may occur for different reasons, including dissatisfaction with the agent's performance, a change of circumstances, or if the seller decides to withdraw the property from the market. It is crucial to review the listing agreement itself to understand any specific provisions regarding termination or cancellation. 2. Mutual Cancellation: This type of termination agreement occurs when both the seller and the real estate agent mutually agree to cancel the listing agreement. This agreement is typically reached when both parties mutually determine that it is in their best interest to terminate the contract. Mutual cancellation requires the agreement and consent of both parties, and it is advisable to document this in writing for future reference. Keywords: Arkansas, termination, cancellation, listing agreement, seller, real estate agent, expiration date, marketing, advertising, property, voluntary termination, mutual cancellation, written notice, unilaterally, dissatisfaction, change of circumstances, withdraw, market, provisions, consent.
