Agency

In New Mexico, what is the effect of a seller revoking a listing agreement before its expiration date?

AThe broker loses all rights with no consequence to the seller
BThe broker may be entitled to damages (marketing expenses), and if the broker was the procuring cause of a sale, still entitled to commission✓ Correct
CThe seller owes the broker nothing
DThe listing automatically transfers to the MLS

Explanation

While sellers generally retain the right to revoke a listing, early termination may entitle the broker to reimbursement of marketing expenses. If a buyer introduced by the broker later purchases, the extender clause may apply.

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