In what circumstances can a broker terminate a listing agreement?

A broker can legally terminate a listing agreement under several specific circumstances, which include a breach of contract, mutual agreement between the broker and the client, or the expiration of the agreement's term. A breach of contract occurs when one party fails to fulfill their obligations as outlined in the agreement, giving the other party the right to terminate. Similarly, if both parties mutually agree to end the contract, they can do so, reflecting an understanding that it is no longer beneficial to continue. Additionally, when the term specified in the listing agreement comes to an end, the contract naturally terminates without the need for further action from either party.

The other options do not encompass the legal framework governing the termination of listing agreements. For instance, the notion of terminating only after a property appraisal is too restrictive and not aligned with standard practices. The instability of the market might influence a broker’s strategy but does not provide a legal basis for termination. Lastly, a request for a change in services does not inherently justify terminating the listing agreement; instead, it would typically lead to a discussion of modifying the agreement or services rather than ending it outright.