31. On March 1, a licensee took an exclusive right-to-sell listing on a property for 120 days. On April 30, the licensee forgot to renew his real estate license. Which of the following is true regarding the listing?
Answer: D
The listing remains a valid listing agreement with the licensee's sponsoring broker.
Even though the licensee forgot to renew his real estate license, the listing agreement is still valid under the sponsorship of the broker, assuming the broker's license is active. The agreement does not automatically become void due to the individual licensee's oversight.
A) It is voidable by the owner since the licensee's real estate license expired.
This statement is incorrect because the listing agreement does not become voidable simply due to the expiration of the individual licensee's license. The agreement remains valid as it is executed under the broker's license, which can still operate legally.
B) The listing expires upon expiration of the licensee's real estate license.
This option is incorrect because the expiration of the licensee's individual license does not cause the listing agreement to expire. The agreement remains valid as long as the broker's license is active, which allows the broker to continue managing the agreement.
C) The sellers can relist the property with any real estate company they choose.
This statement is misleading. While technically the sellers could choose to relist with another company, they would need to fulfill any obligations under the existing listing agreement. The licensee's expired license does not negate the contract with the broker.
D) The listing remains a valid listing agreement with the licensee's sponsoring broker.
This statement is correct. The listing agreement is still valid as it is tied to the sponsoring broker's active license. The broker can continue to represent the sellers and manage the listing despite the individual licensee's lapsed license.
Conclusion
The correct answer is D, as the listing agreement remains valid under the broker's license. Options A, B, and C fail to recognize the distinction between the individual licensee's status and the broker's status, which ultimately governs the validity of the agreement. Thus, the core concept of agency and sponsorship in real estate transactions is upheld.