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.
Pennsylvania Termination or Cancellation of Listing Agreement is a legal process to end or cancel an agreement between a seller of real estate and a real estate agent. This agreement, commonly referred to as a listing agreement, establishes the relationship and obligations between the seller and the agent, including marketing the property and finding potential buyers. There are different types of Pennsylvania Termination or Cancellation of Listing Agreements that can be utilized depending on the specific circumstances: 1. Mutual Agreement: This type of termination occurs when both the seller and the agent agree to terminate the listing agreement. It is done through a written agreement that outlines the terms and conditions of the termination, including any fees or expenses that may be incurred. 2. Expiration of the Listing Agreement: Many listing agreements have a specified term, typically ranging between three and six months. Once this term expires, the agreement is automatically terminated without the need for any further action. 3. Non-performance: If one party fails to uphold their obligations as outlined in the listing agreement, the other party may initiate a termination or cancellation due to non-performance. For example, if the agent fails to adequately market the property or the seller fails to disclose crucial information, the other party can terminate the agreement. 4. Breach of Contract: If either the seller or the agent violates any terms of the listing agreement, the aggrieved party may terminate the contract due to breach. Such breaches can include misrepresentation of the property, failure to disclose material defects, or failure to pay agreed-upon commissions. 5. Death or Incapacity: In situations where either the seller or the agent passes away or becomes incapacitated, the listing agreement is terminated. This type of termination usually necessitates legal documentation, such as a death certificate or medical records. It is important to note that the specific terms and conditions for the termination or cancellation of listing agreements can vary between agreements and should be explicitly stated within the contract. Additionally, seeking legal advice is recommended to ensure compliance with Pennsylvania state laws and regulations.
