Question 41

Death of the seller would cause the termination of a listing contract.

The death of the seller results in the automatic termination of a listing contract, as the contract is inherently tied to the seller's ability to convey ownership of the property.

A) Death of the seller

This option is correct because the listing contract is a personal agreement between the seller and the brokerage. When the seller passes away, the contract cannot be fulfilled, thereby terminating the agreement.

B) Death of the listing salesperson

This option is incorrect as the death of the listing salesperson does not terminate the listing contract. The contract remains in effect, and the brokerage can assign another salesperson to handle the listing.

C) Bankruptcy of the listing salesperson

This option is also incorrect. While bankruptcy may affect the salesperson's ability to work, it does not automatically terminate the listing contract. The brokerage can still fulfill the contract regardless of the salesperson's financial status.

D) Rejection of a counteroffer by the seller

This option is incorrect as the rejection of a counteroffer does not terminate the listing contract. The seller can still choose to continue with the original listing agreement or negotiate further without voiding the contract.

Conclusion

The definitive reason why the death of the seller is the correct answer lies in the fundamental nature of listing contracts, which are personal agreements that cannot be executed if the seller is deceased. All other options fail to terminate the contract as they do not sever the relationship between the seller and the brokerage in the same way.