Question

The listing agreement on a residential property states that it expires on May 2. Which event would NOT terminate the listing?

A) The agreement is not renewed prior to May 2.
B) The house is destroyed by fire on April 25.
C) On April 15, the owner tells the listing broker that the broker's marketing efforts are not satisfactory.
D) The owner dies on April 29.

Answer 1

The statement expressing dissatisfaction with the broker's marketing efforts (option C) would not terminate the listing agreement; other events such as property loss or owner's death do serve as valid grounds for termination.

Step-by-step explanation:

The event from the options given that would NOT terminate the listing agreement on the property is C) On April 15, the owner tells the listing broker that the broker's marketing efforts are not satisfactory. The presence of dissatisfaction alone doesn't provide grounds for automatic termination of the listing unless a specific clause in the agreement addresses performance standards. The listing would naturally expire if not renewed by May 2, it would terminate if the house is destroyed by fire as the property no longer exists, and the owner's death would indeed interrupt the contractual agreement, resulting in termination.

Specific terms in the provided reference discuss the option to cancel the agreement in case of the property not being available for possession due to loss, destruction, or other reasons, which relates to the scenario where the house is destroyed by fire. Termination of the agreement by either party requires a 30-day written notice, which is not indicated in the dissatisfaction expressed by the owner in option C.