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 Tennessee, the termination or cancellation of a listing agreement refers to the process of ending a contract between a real estate agent (the listing agent) and a seller, which grants the agent the exclusive right to market and sell the seller's property. This termination can occur for various reasons, including unsatisfactory performance, breach of contract, completion of the sale, or mutual agreement between the parties involved. The Tennessee Termination or Cancellation of a Listing Agreement has different types based on the specific circumstances: 1. Expiration: A listing agreement typically has a predetermined duration, commonly six months or one year. If the time period specified in the contract elapses without the property being sold, the agreement expires, and both parties are no longer bound by its terms. 2. Cancellation by mutual agreement: The listing agreement can be terminated if both the seller and the listing agent reach a mutual understanding and agreement to cancel it. This situation often arises when there is dissatisfaction with the agent's performance or a change in circumstances, such as the seller deciding to withdraw their property from the market temporarily. 3. Breach of Contract: Either party, whether the seller or the listing agent, can initiate the termination or cancellation if the other party fails to fulfill their contractual obligations. Breaching the terms of the listing agreement could include not adequately marketing the property, not disclosing important information, or any other violation that significantly affects the agreement's performance. 4. Completion of the sale: If the property listed under the agreement gets sold, the listing agreement automatically terminates. The contract is considered fulfilled once the sale is closed, and the property ownership is transferred to the buyer. It is crucial to review the terms and conditions outlined in the specific listing agreement as they may contain additional provisions governing the termination or cancellation process. Additionally, seeking legal counsel or consulting a real estate professional can provide guidance and ensure compliance with Tennessee real estate regulations.
