61.8k views
1 vote
The making of a listing contract without a date of termination is a:

a) Prohibited Dealing.
b) Duty to Account.
c) Broker Relationships Act.
d) Substantial Misrepresentation.

1 Answer

5 votes

Final answer:

A listing contract without a termination date is considered a prohibited dealing in real estate as it does not comply with the regulations mandating that a specific expiry date be included in such agreements. The correct answer is option A.

Step-by-step explanation:

The making of a listing contract without a date of termination is considered a prohibited deal. Listing contracts are agreements between a property owner and a real estate broker, wherein the broker is granted the authority to act as the agent for the sale of the owner's property.

The presence of a termination date is crucial as it ensures that the property owner is not indefinitely tied to a broker, and it provides a clear endpoint to the contractual relationship. According to most real estate laws, listing agreements must have a specified expiry date. Therefore, failing to include a termination date does not comply with these regulations and is typically considered a violation of real estate licensing laws, which can lead to disciplinary actions against the broker.

User Sepehr GH
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.