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.
Maryland Termination or Cancellation of Listing Agreement refers to the legal process by which a real estate listing agreement between a seller and a real estate agent is terminated or canceled. This agreement is typically entered into when an individual wishes to sell their property and hires a real estate agent to represent them in the sale. In Maryland, there are different types of termination or cancellation of listing agreements that can occur: 1. Termination by expiration: This is the most common form of termination, where the listing agreement has a specified expiration date. Once this date is reached, the agreement terminates automatically, and the seller is free to enter into a new listing agreement with the same or a different agent. 2. Termination by mutual agreement: This type of termination occurs when both the seller and the real estate agent agree to terminate the listing agreement before its expiration date. This can happen for various reasons, including dissatisfaction with the agent's performance, changes in the seller's circumstances, or a mutual decision to end the agreement. 3. Termination by breach: If either party fails to fulfill their obligations under the listing agreement, the other party may choose to terminate the agreement due to a breach. For example, if the agent fails to adequately market the property or the seller fails to provide necessary information or documents, the other party may decide to terminate the agreement. 4. Termination by withdrawal: In some cases, a seller may decide to withdraw their property from the market and cancel the listing agreement. This can happen if the seller changes their mind about selling, decides to hold off on selling, or encounters unforeseen circumstances that prevent them from proceeding with the sale. Regardless of the type of termination or cancellation, it is important for both parties to follow the agreed-upon procedures outlined in the listing agreement. This may include providing written notice of termination, adhering to any notice periods specified in the agreement, and resolving any outstanding issues or obligations. It is advisable for both sellers and real estate agents in Maryland to consult with a qualified real estate attorney to ensure that all legal requirements and procedures are followed during the termination or cancellation of a listing agreement. By doing so, both parties can protect their rights and avoid any potential legal disputes that may arise from the termination process.
