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.
Illinois Termination or Cancellation of Listing Agreement refers to the legal process through which a real estate listing agreement between a seller and a real estate broker is terminated or canceled. This agreement outlines the terms and conditions under which the broker represents the seller in marketing and selling their property. In Illinois, there are several types of termination or cancellation of listing agreements, including: 1. By mutual agreement: This occurs when both the seller and the broker agree to terminate the listing agreement. The agreement may specify the terms and conditions under which the termination occurs, such as payment of any outstanding fees or expenses. 2. Expiration: If the listing agreement has a set expiration date, it will automatically terminate upon reaching that date unless otherwise agreed upon by both parties. 3. Performance: Termination based on performance occurs when either party fails to fulfill their obligations as outlined in the listing agreement. For instance, if the broker is not actively marketing the property or the seller does not provide necessary information or access to the property, either party may have grounds for termination. 4. Breach of contract: If either the seller or the broker fails to comply with the terms and conditions outlined in the listing agreement, the aggrieved party may seek termination due to a breach of contract. This could include violations such as misrepresentation, negligence, or failure to disclose relevant information. 5. Unilateral cancellation: In some cases, the Illinois Real Estate License Act permits a seller to unilaterally cancel the listing agreement with the broker. This typically requires giving proper notice to the broker within a specified period of time and possibly paying a cancellation fee as agreed upon in the contract. It is important for both sellers and brokers to carefully review the listing agreement to understand the termination provisions and any potential consequences. If a dispute arises, it is advisable to consult with a real estate attorney who can provide guidance on the specific terms of the agreement and the applicable laws in Illinois.
