Question 20

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

The listing agreement remains valid with the licensee's sponsoring broker despite the licensee's failure to renew their license. This is because the broker retains the authority to conduct real estate transactions under the firm's license.

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 individual license does not automatically render the listing voidable by the owner. The agreement is with the broker, who still holds a valid license.

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

This statement is also incorrect. The listing agreement does not expire simply because the individual licensee's license has expired; it remains valid as long as the broker's license is active.

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

This option is misleading. The sellers cannot relist the property with another company while the original listing agreement is still in effect, even if the licensee's individual license has expired. The agreement is still binding with the broker.

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

This option is correct. The listing agreement is still valid under the broker's license, allowing the broker to fulfill the obligations of the contract, even if the individual licensee is no longer able to act.

Conclusion

The correct answer is option D, as the listing agreement remains valid due to the broker's active license, which continues to authorize the listing's enforcement. All other options falsely suggest that the expiration of the individual license impacts the validity of the listing agreement, which is not the case when a broker's license is still in force.