Question 33

The agency relationship between the seller and the listing broker terminates automatically upon expiration of the listing.

Once a listing contract expires with no offers received, the agency relationship between the seller and the listing broker automatically terminates.

A) may continue indefinitely if the seller and the broker agree to this orally.

This option is incorrect because once the listing contract has expired, the agency relationship does not continue indefinitely, even with an oral agreement. The original terms of the contract dictate that the relationship ends upon expiration unless a new agreement is made.

B) may continue until the broker provides a written notice of termination.

This choice is incorrect as the expiration of the listing contract itself signifies the end of the agency relationship. There is no requirement for the broker to provide a written notice of termination since the contract's expiration inherently concludes the relationship.

C) was never legally binding since no licensed activity was performed.

This option is incorrect because the listing contract is legally binding regardless of whether any offers were received. The contract is valid until its expiration, at which point the agency relationship ends.

D) terminates automatically upon expiration of the listing.

This is the correct answer. The agency relationship between the seller and the listing broker terminates automatically upon the expiration of the listing contract, which clearly indicates that no further obligations exist after this point.

Conclusion

The correct answer is definitively right because it aligns with the legal principles governing agency relationships and listing contracts. All other options fail to recognize that the agency relationship is inherently tied to the terms of the listing contract and concludes automatically upon expiration, regardless of any further discussions or activities.