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 New Hampshire, the Termination or Cancellation of Listing Agreement refers to the process by which a real estate listing agreement is ended or terminated before the agreed-upon duration. This agreement is typically signed between a real estate agent or broker and a property owner, outlining the terms and conditions under which the agent will market and sell the property. There are primarily three types of termination or cancellation of listing agreements in New Hampshire: 1. Expiration: A listing agreement will generally have a predetermined duration, commonly between three and six months. Once this timeframe has elapsed, the agreement expires automatically, and both parties are no longer bound by its terms and conditions. However, the listing agreement may include a clause allowing for an extension or renewal. 2. Mutual Agreement: In some cases, the agent and the property owner may mutually agree to terminate the listing agreement before its expiration. This could be due to various reasons such as a change in circumstances, dissatisfaction with the agent's services, or a decision to take the property off the market temporarily or permanently. Both parties must sign a written agreement stating their mutual consent to terminate. 3. Breach: If either party fails to fulfill their obligations as specified in the listing agreement, it may result in a breach. For instance, if the agent breaches their duty to market and promote the property effectively or if the property owner fails to provide accurate information about the property, it may be grounds for termination. However, it is crucial to consult legal counsel to determine if the breach is substantial enough to justify termination, as certain remedies or penalties may apply. When terminating a listing agreement, it is important to review the specific terms and conditions stated in the agreement itself, as they may outline the steps or procedures that need to be followed. Additionally, it is recommended to communicate any termination or cancellation in writing, ensuring that both parties are in agreement and clearly stating the effective date of termination. Furthermore, each termination or cancellation of listing agreement can have its own individual circumstances and requirements. It is advisable to consult with an experienced real estate attorney or professional who is knowledgeable about New Hampshire real estate laws and regulations to ensure compliance and protect your rights.
