Contracts

A Wyoming seller has an existing listing agreement that expires December 31. On December 28, they list with a new broker. This creates:

ANo issue since the first listing is almost expired
BA potential problem since there may be overlap and the seller could owe commission to both brokers if a buyer from the first broker's marketing purchases the property✓ Correct
CAn automatic cancellation of the first listing
DA violation of WREC rules requiring immediate license revocation

Explanation

Signing a new listing before the old listing expires can create a double commission obligation. Many listing agreements contain 'protection period' clauses entitling the broker to a commission on sales to buyers they introduced—even after expiration. Sellers should ensure one listing expires before signing another.

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