How Listing are Fulfilled and Terminated

Question 1

What is the only desirable and favorable way to terminate a listing agreement and why?

Answer 1

Fulfillment of the contract. Results when both parties have performed the actions they have promised to perform

Question 2

What is the one major responsibility of the broker?

Answer 2

Due diligence

Question 3

Explain due diligence

Answer 3

In the listing context, refers to verifying the accuracy of the statements in the listing regarding the property, the owner, and the owner’s representation

Question 4

What are the 2 principal determinate of procuring cause?

Answer 4

1. Being first to find the customer

2. Being the one who induces the customer to complete the transaction

Question 5

Other reasons for termination of a listing include:

Answer 5

• Performance: all parties perform; the intended outcome
• Infeasibility: it’s not possible to perform under the terms of the agreement
• Mutual agreement: both parties agree to cancel the listing
• Revocation: either party cancels the listing, with or without the right
• Abandonment: the broker does not attempt to perform
• Breach: the terms of the listing are violated
• Lapse of time: the listing expires
• Invalidity of contract: the listing does not meet the criteria for validity
• Involuntary title transfer - condemnation, bankruptcy, foreclosure
• Destruction of the property