Real Estate · State Contract Requirements

What generally makes a listing agreement enforceable under most state laws?

Correct answer

It is typically required to be in writing, signed by the seller, and to state a definite expiration date and the terms of compensation

  1. A A verbal handshake is always enough
  2. B It is typically required to be in writing, signed by the seller, and to state a definite expiration date and the terms of compensation
  3. C It needs only the agent's signature
  4. D No particular form is ever required

Why this is the answer

Most states require a listing agreement to be in writing and signed by the property owner to be enforceable, and many require that it include a definite expiration date and clearly state how and how much the broker will be compensated. A listing without a set termination date, or an open-ended one, is prohibited in many states. These requirements protect sellers from indefinite obligations and unclear commission terms. The specific mandatory provisions vary by state, but the general rule — written, signed, definite termination, and defined compensation — is widely shared, and the state portion expects candidates to know these elements of a valid listing.
Source: Real Estate State Portion, Listing Agreement Requirements

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