In British Columbia, under what circumstances can a listing agreement be terminated by the seller before its expiry date without penalty?
Correct Answer
D) If the agent breaches their fiduciary duties or the listing agreement terms
A listing agreement can be terminated early without penalty if the agent breaches their fiduciary duties (such as failing to act in the seller's best interests) or violates specific terms of the listing agreement. Simply not receiving acceptable offers or normal market conditions do not constitute grounds for penalty-free termination of a valid listing contract.
Why This Is the Correct Answer
Option D is correct because under RESA and contract law principles, material breach by the agent provides legal grounds for penalty-free termination. When agents breach fiduciary duties (like failing to disclose material facts, acting against client interests, or violating confidentiality) or violate specific listing agreement terms (like marketing obligations or communication requirements), they fundamentally fail to perform their contractual obligations. This breach releases the seller from their contractual commitments without penalty, as the agent has not fulfilled their side of the agreement.
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