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 Florida, the termination or cancellation of a listing agreement refers to the process of ending a contractual agreement between a real estate agent and a property owner, whereby the agent lists and markets the property for sale. Various circumstances may arise that prompt either party to terminate or cancel the agreement before its designated expiration date. One common type of termination is known as mutual termination, wherein both the property owner and the real estate agent agree to end the listing agreement. This could occur when the property fails to sell during the agreed-upon timeframe, or when the owner wishes to pursue a different avenue for selling the property. Mutual termination typically requires a written agreement between both parties and may include clauses specifying the distribution of any costs incurred during the listing period. Another type of termination is unilateral termination, in which one party unilaterally terminates the listing agreement, typically without the consent of the other party. Unilateral termination can occur for various reasons, such as breach of contract by either party, dissatisfaction with the agent's performance, or the property owner's decision to withdraw the property from the market. It is important for the terminating party to review the terms and conditions outlined in the listing agreement to ensure compliance with any notification requirements or penalties associated with unilateral termination. In some cases, the listing agreement may include provisions for automatic cancellation or expiration. For example, if the property owner decides to sell the property independently or with a different agent, the original listing agreement may automatically terminate upon the signing of a new agreement. Similarly, the listing agreement may have a predetermined expiration date, after which the parties are no longer bound by the terms of the agreement. When terminating or canceling a listing agreement in Florida, it is crucial to review the terms and conditions outlined in the agreement itself. This includes looking for clauses related to notice periods, fees, and any potential penalties for early termination. It is also advisable to consult with a qualified real estate attorney or agent to ensure compliance with all legal requirements and to protect one's rights and interests. Some relevant keywords for Florida termination or cancellation of a listing agreement include: termination, cancellation, mutual termination, unilateral termination, breach of contract, dissatisfaction, withdrawal, expiration, automatic cancellation, notice period, penalties, legal requirements, real estate attorney, real estate agent, and property owner.
