Idaho Real Estate Practice Exam

If a seller withdraws the broker's authority to sell the property, what may still apply?

1. The property must be relisted

2. Terms of the listing agreement may still be binding

3. The seller can keep the deposit

4. The broker can sell without a listing

The correct answer is: Terms of the listing agreement may still be binding

The correct answer highlights that even if a seller withdraws the broker's authority to sell the property, the terms of the listing agreement may still be binding on both parties. When a listing agreement is created, it typically includes specific provisions regarding the duration of the agreement, commission rates, obligations of the broker, and other related terms. Even if a seller decides to terminate the agreement prematurely, they may still be legally obligated to uphold the terms that were agreed upon at the outset, particularly regarding commission or any fees that may be due to the broker for services rendered up to that point. This means that the broker may still have a claim to compensation if they completed any marketing or related efforts to sell the property. The other scenarios address possibilities that do not align with standard practices in real estate. For example, there is no requirement to relist the property simply because the seller has withdrawn the broker's authority, as it is up to the seller's discretion what steps to take next. While the seller may wish to keep the deposit, this typically depends on the specific terms of the agreement and circumstances leading to the termination, which are complex and do not automatically favor the seller. Furthermore, the broker cannot unilaterally sell the property without a valid listing