Which of the following must be included in a listing contract?

Which of the following must be included in a listing contract?

• A. Property square footage
• B. Termination date
• C. Commission amount
• D. Property tax history

Answer: (B)

A listing contract is a legally binding agreement between a property owner and a real estate broker, which gives the broker the authority to sell or lease the property. One of the essential elements in a listing contract is the termination date. This date specifies when the agreement will end, providing clarity for both the property owner and the broker on the duration of their commitment. A clear termination date allows either party to understand when they can pursue other options if the property has not been sold or rented within that timeframe. Including a termination date also helps protect the interests of both parties by ensuring that the broker cannot continue to represent the property indefinitely if the owner decides they no longer wish to sell or lease it. This clarity is crucial for maintaining a professional relationship and setting realistic expectations regarding the sale or lease process. While property square footage, commission amount, and property tax history can all be useful or relevant in a listing agreement, they are not mandatory components that must be included in every listing contract. The commission amount, for example, is often agreed upon but not as strictly required as the termination date. Thus, the inclusion of a termination date is a critical aspect that any listing contract must address to be complete and enforceable.

A listing contract is a legally binding agreement between a property owner and a real estate broker, which gives the broker the authority to sell or lease the property. One of the essential elements in a listing contract is the termination date. This date specifies when the agreement will end, providing clarity for both the property owner and the broker on the duration of their commitment. A clear termination date allows either party to understand when they can pursue other options if the property has not been sold or rented within that timeframe.

Including a termination date also helps protect the interests of both parties by ensuring that the broker cannot continue to represent the property indefinitely if the owner decides they no longer wish to sell or lease it. This clarity is crucial for maintaining a professional relationship and setting realistic expectations regarding the sale or lease process.

While property square footage, commission amount, and property tax history can all be useful or relevant in a listing agreement, they are not mandatory components that must be included in every listing contract. The commission amount, for example, is often agreed upon but not as strictly required as the termination date. Thus, the inclusion of a termination date is a critical aspect that any listing contract must address to be complete and enforceable.