In which event is a listing agreement typically terminated?

A listing agreement is typically terminated when the seller dies because the legal entity that entered into the agreement ceases to exist. Listing agreements are contracts between a seller and a real estate agent, and since the seller is the contractual party, their death results in the automatic termination of the agreement. This ensures that the agent cannot continue to operate under a contract with a party who can no longer make decisions regarding the property.

Other events, such as a property being sold, would actually result in the successful completion of the agreement rather than its termination, as the listing is fulfilled by the sale. If an agent resigns, it does not automatically terminate the listing agreement either; often, the agreement can be transferred to another agent within the same brokerage. Similarly, a buyer withdrawing from negotiations does not affect the listing agreement directly, as it is solely between the seller and the agent. Therefore, the seller's death is the definitive event that leads to termination of the listing agreement.