Liz listed her property with an agreement end date of May 31. The property went under contract on May 12, and the buyer's earnest money was deposited on May 13. Based on the home inspection results, the buyer legally terminated the contract on May 20. When did the listing agreement between Liz and the listing broker officially terminate?

Rationale

The listing agreement between Liz and the listing broker officially terminated on May 31.

The listing agreement remains in effect until its specified end date, which is May 31 in this case. Although the buyer terminated the contract on May 20, this action does not affect the listing agreement's validity until its designated expiration date.

A (12-May) YOUR ANSWER

This date marks when the property went under contract, but it does not influence the termination of the listing agreement. The listing agreement continues until the predetermined end date, regardless of contract activity.

B (13-May) YOUR ANSWER

This date corresponds to when the buyer's earnest money was deposited. Similar to the previous choice, this event does not impact the listing agreement's status. The agreement remains valid and in effect until the specified termination date.

C (20-May) YOUR ANSWER

While this date is significant because the buyer legally terminated the contract, it does not terminate the listing agreement. The agreement continues until May 31, regardless of the buyer's actions concerning the purchase contract.

D (31-May) CORRECT

The listing agreement officially terminates on this date, as it was established in the terms of the agreement. All events leading up to this date, including the buyer's termination of the contract, do not alter the listing agreement's expiration.

Conclusion

In real estate transactions, listing agreements are bound by their explicit terms, including their specified end dates. In this scenario, regardless of the contract developments or the buyer's termination actions, Liz's listing agreement with the broker remains valid until May 31, which is the agreed-upon termination date. This illustrates the importance of adhering to contractual agreements in real estate transactions.

The listing agreement between Liz and the listing broker officially terminated on May 31.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test