Question 57

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

The death of the seller results in the termination of the listing contract, as the seller is no longer able to fulfill their obligations under the agreement. This legal principle ensures that contracts are upheld only by parties capable of performing their duties.

A) Death of the seller

This option is correct because when the seller passes away, they can no longer represent their interests in the property, thereby nullifying the contract. Listing agreements are personal to the seller, and their death discharges the contract.

B) Death of the listing salesperson

The death of the listing salesperson does not terminate the listing contract. In most cases, the brokerage firm that employs the salesperson would continue to manage the listing, as the contract is typically with the brokerage rather than the individual agent.

C) Bankruptcy of the listing salesperson

While bankruptcy may affect the listing salesperson, it does not necessarily terminate the listing contract. The brokerage may still be obligated to fulfill the contract terms, and the listing can often be managed by another agent within the same firm.

D) Rejection of a counteroffer by the seller

Rejection of a counteroffer by the seller does not terminate the listing contract. It simply means that the negotiation process continues, and the listing remains in effect until an agreement is reached or another condition that terminates the contract occurs.

Conclusion

In summary, the death of the seller is the only situation among the options that directly terminates a listing contract, as it affects the seller's ability to fulfill their contractual obligations. All other options pertain to circumstances that do not legally nullify the contract, allowing it to remain in effect until other specific conditions are met.