What is the preferable method to terminate a listing agreement?

The preferable method to terminate a listing agreement is through performance. This means that the objectives outlined in the agreement have been successfully achieved, typically resulting in the sale or lease of the property. When the performance is fulfilled, both the seller and the agent can move on, and it solidifies the professional relationship by demonstrating that the agent has completed their duties as expected.

Termination through performance is favorable because it indicates that the contract has been executed as intended. The parties involved can feel confident that the process adhered to legal and ethical standards, and there are clear outcomes from the listing agreement. Moreover, it is often the most straightforward resolution that leaves all parties satisfied.

While expiration simply means that the listing agreement has reached its intended time limit, it does not necessarily indicate that any objectives have been met or that a sale occurred. Mutual consent also works to terminate an agreement but may require negotiation between the parties to agree on ending the contract, which may not always provide closure or satisfaction. Abandonment, on the other hand, is an undesirable method where one party disengages without a proper process, leading to potential legal complications and disputes.