Agency
When a Montana seller terminates a listing agreement without cause before the expiration date, the broker may be entitled to:
ANothing, since the sale did not occur
BCompensation for documented out-of-pocket marketing expenses as specified in the listing agreement✓ Correct
CFull commission as if the property had sold
DA penalty equal to twice the agreed commission
Explanation
When a seller wrongfully terminates a listing, the broker's remedy depends on the listing agreement language. Most Montana listing agreements entitle the broker to recover documented marketing expenses in the event of improper early termination, though some agreements may provide for additional remedies.
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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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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