83. A seller signs a listing contract with a licensee, but several weeks later wishes to cancel the listing before it expires. Is the seller permitted to do so?
Answer: A
Yes, because it is the seller's right, but there may be liability to the licensee's firm for a commission.
A seller has the right to cancel a listing contract before its expiration; however, doing so may result in a liability for the commission owed to the licensee's firm.
A) Yes, because it is the seller's right, but there may be liability to the licensee's firm for a commission.
This option correctly states the seller's right to cancel the listing contract at any time, acknowledging that while the seller can withdraw, there may be financial repercussions, such as owing a commission if the licensee has already incurred costs or performed services related to the listing.
B) Yes, because the seller can transfer the listing to another licensee before the expiration date on the contract.
While a seller may wish to transfer the listing, this option incorrectly implies that transfer is a means to cancel the original listing. The seller may choose to cancel, but transferring does not negate the original contract's terms and obligations.
C) No, because a listing can be canceled only if the licensee abandons it.
This option is incorrect as it states a false condition regarding cancellation. A seller is not required to wait for the licensee to abandon the listing; they have the right to cancel independently of the licensee's actions.
D) No, because a bilateral written agreement cannot be canceled during its term.
This option misunderstands the nature of listing contracts. While they are bilateral agreements, they can be canceled by the seller, although this may involve potential liabilities, making this statement inaccurate in the context of the seller's rights.
Conclusion
The correct answer is definitive because it recognizes the seller's right to cancel a listing contract while also informing them of the potential consequences regarding commission obligations. The other options fail to accurately reflect the seller's rights or misinterpret the nature of contractual agreements in real estate transactions.