Question 13

The listing remains a valid listing agreement with the licensee's sponsoring broker.

The exclusive right-to-sell listing remains valid because it is tied to the sponsoring broker rather than the individual licensee. The broker retains the authority to execute the listing agreement even if the licensee's license has expired.

A) It is voidable by the owner since the licensee's real estate license expired

This option is incorrect because the expiration of the licensee's real estate license does not automatically render the listing voidable by the owner. The agreement remains valid as it is associated with the broker.

B) The listing expires upon expiration of the licensee's real estate license

This statement is also incorrect. The listing does not expire with the individual licensee's license; it remains effective under the broker's authority until the agreed-upon 120 days have passed or the owner chooses to cancel it.

C) The sellers can relist the property with any real estate company they choose

This choice is not accurate because the property is still under an exclusive listing agreement with the current broker. Until the listing period concludes or is otherwise terminated, the sellers cannot list the property with another company.

D) The listing remains a valid listing agreement with the licensee's sponsoring broker

This option is correct as it acknowledges that the listing agreement is still in effect through the broker, who holds the license. The broker can continue to manage the listing despite the licensee's license expiration.

Conclusion

The correct answer is D because the listing agreement is valid through the sponsoring broker, ensuring continuity despite the licensee's lapsed license. Options A, B, and C fail to recognize the legal framework surrounding real estate listings, which protects the agreement with the broker regardless of the individual licensee's status.