Question

A home seller signs a listing agreement with a broker and the next week decides not to sell and revokes the listing. Which of the following is true?

Answer 1

Answer:

The broker may have a claim for damages

Explanation:

A listing agreement is a legal contract between a broker or a real estate company and a homeowner with intentions to sell a property or house. A listing agreement is a legally binding agreement that provides the broker a right to sell the house or property. The broker has every right to claim for damages because in this type of contract, there is usually no provision for a termination of contract and hence the home seller cannot revoke once the agreement is signed or if he does, he still pays the broker all due commission.