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.
Maine Termination or Cancellation of Listing Agreement refers to the process of ending a contractual agreement between a real estate agent and a property owner, wherein the agent agrees to market and sell the owner's property. This agreement can be terminated or cancelled under certain circumstances. In the state of Maine, there are different types of termination or cancellation of listing agreements, including unilateral termination, mutual agreement termination, expiration of term, breach of contract, and failure to perform. 1. Unilateral Termination: This occurs when either party decides to end the agreement without the consent of the other party. For example, the property owner may choose to terminate the listing agreement if they are dissatisfied with the agent's performance or marketing efforts. 2. Mutual Agreement Termination: In some cases, both the real estate agent and the property owner may come to a mutual agreement to terminate the listing agreement. This usually happens when both parties realize that the agreement is not working out as expected or when circumstances change. 3. Expiration of Term: A listing agreement has a set duration, typically ranging from a few months to a year. Once the predetermined term expires, the agreement automatically terminates, and both parties are released from their contractual obligations. 4. Breach of Contract: If either party fails to fulfill their obligations as outlined in the listing agreement, it can be considered a breach of contract. For example, if the real estate agent fails to adequately market the property or the property owner fails to provide necessary information, either party may have grounds to terminate the agreement. 5. Failure to Perform: Similar to a breach of contract, if one party consistently fails to perform their duties or meet their responsibilities under the listing agreement, the other party may have the right to terminate the agreement. It is important to note that termination or cancellation of a listing agreement should be done in accordance with the terms specified in the agreement itself. This may include providing written notice to the other party or agreeing on specific conditions for termination. It is advisable for both parties to seek legal advice to ensure that the termination or cancellation is carried out in compliance with Maine real estate laws and regulations.
