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 York, the Termination or Cancellation of Listing Agreement refers to the legal process of ending a contractual agreement between a real estate agent or broker and a property owner, which grants the agent the exclusive right to market and sell the property. This agreement can be terminated or cancelled under certain circumstances and is governed by specific laws and regulations. There are different types of termination or cancellation options available in New York, including: 1. Expiration: The listing agreement may have a predefined expiration date, after which the contract automatically terminates without the need for any further action or communication. 2. Mutual Agreement: The agent and the property owner may mutually agree to terminate the listing agreement before the expiration date. This typically requires both parties to sign a written agreement stating the termination terms and conditions. 3. Breach of Contract: If either the agent or the property owner fails to fulfill their obligations as outlined in the listing agreement, the other party may have the right to terminate or cancel the contract. This could include situations of non-performance, misrepresentation, fraud, or breach of fiduciary duty. 4. Unsatisfactory Performance: If the property owner is dissatisfied with the agent's performance or marketing efforts, they may seek to terminate the agreement. However, specific conditions or performance standards may need to be met before cancellation is possible. 5. Death or Incapacity: In the unfortunate event of the agent or property owner's death or incapacity, the listing agreement may be terminated automatically. It is important to consult legal professionals to understand the legal implications and requirements in such cases. Regardless of the reason for termination or cancellation, it is crucial to review the terms and conditions of the listing agreement and consult legal advice to ensure compliance with New York real estate laws. Parties should also consider any potential financial or legal consequences that may arise from the termination. Keywords: New York, Termination or Cancellation of Listing Agreement, Expiration, Mutual Agreement, Breach of Contract, Unsatisfactory Performance, Death, Incapacity, Real Estate, Legal.
