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 Texas, the Termination or Cancellation of Listing Agreement refers to the process by which a seller or a real estate agent terminates or cancels a listing agreement. A listing agreement is a contract between a seller and a real estate broker, outlining the terms and conditions under which the broker will market and sell the property. There are two main types of termination or cancellation of listing agreements in Texas: voluntary termination and mutual cancellation. Voluntary termination occurs when one party, either the seller or the real estate agent, decides to terminate the listing agreement before the expiration date specified in the contract. This could happen for a variety of reasons, such as dissatisfaction with the agent's performance or a change in personal circumstances. In this case, the party seeking termination must notify the other party in writing, stating the reasons for termination and indicating the effective date of termination. Mutual cancellation, on the other hand, occurs when both parties agree to terminate the listing agreement. This could happen if the property is sold prior to the expiration date, or if both parties are no longer satisfied with the arrangement. In a mutual cancellation, both parties must sign a written agreement indicating their intent to terminate the listing agreement. The agreement should include the effective date of termination and any agreed-upon terms, such as the payment of outstanding fees or expenses. It is important to note that terminating or canceling a listing agreement does not absolve the seller or the real estate agent from any financial obligations they may have incurred during the term of the agreement. For example, if the property was sold during the listing period, the real estate agent may still be entitled to a commission according to the terms of the original listing agreement. When considering termination or cancellation, it is advisable for both parties to consult with legal professionals or real estate experts who are knowledgeable about Texas real estate laws. This will help ensure that the termination process is carried out in accordance with legal requirements and protects the rights and interests of both the seller and the real estate agent.
