Question 1

Death of the seller causes the termination of a listing contract.

The listing contract is terminated when the seller passes away, as the agreement is inherently tied to the seller's legal rights and obligations.

A) Death of the seller

This option is correct because the death of the seller results in the termination of the listing contract. Real estate contracts are personal to the parties involved, and the seller's death means they can no longer fulfill the terms of the contract.

B) Death of the listing salesperson

This option is incorrect. While the death of the listing salesperson may create complications, it does not automatically terminate the listing contract. The brokerage can appoint another salesperson to continue the contract, as the agreement is with the brokerage rather than the individual salesperson.

C) Bankruptcy of the listing salesperson

This option is also incorrect. Similar to the previous choice, the bankruptcy of the listing salesperson does not terminate the listing contract. The brokerage remains responsible for managing the contract, and a new salesperson can be assigned to handle the listing.

D) Rejection of a counteroffer by the seller

This option is incorrect as well. Rejection of a counteroffer by the seller does not terminate the listing contract. It simply indicates that the seller is not accepting the terms proposed and the listing remains in effect unless other conditions arise that would warrant termination.

Conclusion

The death of the seller is the definitive reason for terminating the listing contract, as it affects the seller's ability to engage in the transaction. All other options do not result in the termination of the contract, highlighting the personal nature of real estate agreements and the continuing authority of the brokerage in managing listings.