ContractsIntermediateArizona Exam

In Arizona, a 'seller's right to cancel' provision in a listing agreement allows the broker to:

ACancel the listing at any time without liability
BCharge a cancellation fee if the seller cancels without cause before expirationCorrect
CRequire the seller to extend the listing
DAutomatically renew the listing upon expiration

Why Charge a cancellation fee if the seller cancels without cause before expiration Is Correct

Answer B: Charge a cancellation fee if the seller cancels without cause before expiration

Many Arizona listing agreements include a provision allowing the broker to charge a cancellation fee (or seek compensation) if the seller terminates the listing without cause before its expiration, compensating the broker for marketing expenses.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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