agency

listing agreement

An employment contract between a property owner and a broker that authorizes the broker to market the property and sets the terms of compensation. It typically includes the listing price, duration, commission arrangement, and the broker's duties. Most listing agreements create a special agency. Common types are exclusive right to sell, exclusive agency, and open listings.

Exam tip: A listing agreement is an employment contract with the broker, not the salesperson, and it creates special agency. It usually must be in writing to be enforceable.
Example: A seller signs a six-month exclusive right to sell agreement with a brokerage at a list price of $425,000.

1. Which event terminates a listing agreement by operation (force) of law?

Answer & explanation

Answer: B. Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Related terms & state variants

exclusive agency listing exclusive right to sell open listing protection period special agent

Sources

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Last verified: 2026-10-23