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.
Kings New York Termination or Cancellation of Listing Agreement can occur for various reasons and understanding the process is essential for both sellers and real estate agents. This detailed description aims to shed light on the different aspects and types of termination or cancellation of a listing agreement in Kings New York. 1. Kings New York Termination or Cancellation of Listing Agreement: A listing agreement is a contract between a seller and a real estate agent, granting the agent exclusive rights to market and sell the property. However, certain circumstances may arise leading to termination or cancellation of the contract before its natural expiration. The termination or cancellation might be initiated by either party involved or mutually agreed upon. 2. Types of Termination or Cancellation of Listing Agreement: a) Mutual Agreement: In some cases, sellers and real estate agents may find it mutually beneficial to terminate the listing agreement. This could occur due to a change in the seller's circumstances, a change in agent representation, or if both parties agree that it's in their best interest to part ways. b) Expiration: Listing agreements have a predetermined term, typically ranging from a few months to a year. When the contract reaches its expiration date, the agreement automatically terminates unless renewed or extended by both parties. c) Breach of Contract: If either the seller or the real estate agent fails to fulfill their obligations as outlined in the listing agreement, it can result in a breach of contract. Common breaches include misrepresentation, lack of marketing efforts, and failure to disclose important information. In such cases, either party may choose to terminate the agreement. d) Unilateral Termination: Sometimes a party may unilaterally decide to terminate the listing agreement. This could occur if the seller feels dissatisfied with the agent's performance or the agent believes the seller is not cooperative or committed to selling the property. e) Withdrawal: Sellers may decide to withdraw their property from the market due to personal reasons, change of plans, or other circumstances. This action effectively cancels the listing agreement without terminating any contractual relationship between the seller and agent. Regardless of the type of termination or cancellation, it is essential for both parties to communicate clearly and document the agreement to avoid any potential disputes or legal consequences. Real estate professionals in Kings New York should be well-versed in the procedures and legal aspects of these terminations or cancellations to navigate the process smoothly and professionally.
