Contracts
Under Massachusetts law, a listing agreement is terminated automatically when:
AThe broker goes on vacation
BThe property is destroyed✓ Correct
CThe listed price is reduced
DA buyer makes an offer
Explanation
If the property is destroyed (e.g.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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