Humber/Ontario Real Estate Course 3 Exam Practice

What happens to the listing agreement terms when a brokerage agrees to cancel a listing?

1. It can be reactivated

2. A holdover clause continues

3. The previous agent must review the terms

4. A new brokerage takes over all terms

5. The terms are null and void

6. A new fee is imposed

The correct answer is: The terms are null and void

When a brokerage agrees to cancel a listing agreement, the terms become null and void. This means that all obligations outlined in the agreement cease to exist for both parties. Once the cancellation is formalized, neither the seller nor the brokerage is bound by the terms that were previously in place. This outcome emphasizes that a cancellation effectively terminates the relationship that was established through the listing agreement, removing any responsibilities related to the marketing, selling, or any associated fees that may have applied during the life of the agreement. In instances where the listing is terminated, it allows the seller the freedom to pursue other avenues, including listing with a different brokerage or exploring alternative sales methods without any lingering obligations from the original agreement.