Contracts

A Minnesota listing agreement is signed for a 90-day term. On day 45, the seller receives an offer and accepts it, but the transaction falls through on day 60 due to a financing contingency. What happens to the listing?

AThe listing expires since an offer was accepted
BThe listing remains active for the remaining 30 days unless the parties agree otherwise✓ Correct
CThe seller must relist with a new listing agreement
DThe broker is automatically entitled to a commission since an offer was accepted

Explanation

A failed transaction (deal falls through) typically doesn't automatically terminate the listing agreement in Minnesota unless the listing agreement specifically provides for it. If the deal falls through during the listing period, the property generally goes back on the market and the listing continues until it expires.

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