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.
Hawaii Termination or Cancellation of Listing Agreement refers to the process by which a real estate listing agreement in the state of Hawaii is terminated or canceled, ending the contractual relationship between the listing agent and the seller. This agreement is typically signed between a seller and a real estate brokerage firm, enabling the firm's agent to market and sell the seller's property. There are several instances in which termination or cancellation of the listing agreement may occur in Hawaii: 1. Expiration: The listing agreement has a predetermined expiration date, after which it automatically terminates. The duration of the agreement is agreed upon by both parties at the time of signing. 2. Mutual Agreement: The seller and the listing agent may agree to terminate the listing agreement before its expiration date. This can occur for various reasons, such as dissatisfaction with the agent's performance, a change in marketing strategy, or a decision by the seller to take the property off the market. 3. Performance Issues: Either party may terminate the listing agreement if there are significant performance issues that breach the terms of the contract. For example, if the listing agent fails to fulfill their marketing obligations or the seller fails to complete necessary repairs as agreed. 4. Withdrawal: A seller may choose to withdraw their property from the market for personal or financial reasons, resulting in the termination of the listing agreement. This withdrawal is typically done by providing written notice to the listing agent or brokerage firm. 5. Default: If either the seller or the listing agent fails to meet their contractual obligations, the non-defaulting party may have the right to terminate the listing agreement. Non-payment of commission, violation of terms, or breach of fiduciary duty can be grounds for termination due to default. 6. Death or Incapacity: In the unfortunate event of the death or incapacity of either the seller or the listing agent, the listing agreement may be terminated. Regardless of the reason for termination or cancellation, it is crucial to follow the proper procedures outlined in the listing agreement and seek legal advice if needed. This helps ensure that the termination is executed correctly, avoiding any potential legal disputes or financial consequences.
