Final answer:
The principal may have the option to terminate a brokerage agreement under certain conditions such as failure to deliver possession of a property, but may face legal consequences like court action if the termination breaches the existing contract.
Step-by-step explanation:
If a principal no longer wishes to be represented by a broker and seeks to terminate their Broke Listing Contract, there are usually specific conditions under which this can occur without further liability. Generally, one cannot simply cancel an exclusive listing contract without potential consequences. While it may be possible to revoke the brokerage agreement, the principal may indeed be subject to legal consequences, such as court action for breach of contract. If there are justifiable and legal circumstances that prevent the fulfillment of the contract, as outlined under POSSESSION and TERMINATION clauses typically found in such agreements, then either party may be able to terminate the agreement without further obligation.
For example, if the owner cannot deliver possession on the agreed date due to unforeseen circumstances, such as prior residents not vacating or the property being destroyed, both the resident and owner can cancel the agreement with written notice. Furthermore, after the original leasing period, the agreement may be ended upon providing a 30-day written notice, although local laws requiring 'just cause' must be adhered to when doing so. Notwithstanding these contractual clauses, terminating a brokerage agreement outside of these conditions could result in the principal still being liable to the broker.