Question 19

Sale of the property

The clause in a listing contract that automatically terminates the listing when the property is sold is the sale of the property. This clause ensures that once a sale is completed, the agreement between the seller and the listing agent concludes.

A) Expiration date.

While the expiration date indicates when a listing agreement will end, it does not automatically terminate the listing upon the sale of the property. Instead, it simply sets a time limit for the contract, regardless of whether the property is sold or not.

B) Listing of the house.

The listing of the house refers to the general agreement that allows the property to be marketed. This option does not address the termination of the contract upon the sale, as it relates more to the initiation of the listing rather than its conclusion.

C) Sale of the property.

This option is correct because it explicitly states that the listing contract terminates automatically upon the sale of the property. This clause is fundamental in real estate agreements, ensuring clarity and closure once the transaction is complete.

D) The seller has the right to cancel the listing contract at any time for any reason without any obligation to compensate the listing licensee.

Although this option provides the seller with flexibility to cancel the contract, it does not automatically terminate the listing upon the sale of the property. It describes a unilateral right of the seller rather than a condition that ends the contract upon completion of a sale.

Conclusion

The option regarding the sale of the property is definitively correct as it directly addresses the automatic termination of the listing contract upon the successful transaction. Other options either refer to aspects of the contract that do not lead to termination or provide rights that do not activate upon the sale, thus failing to meet the criteria outlined in the question.