A listing broker in Washington is preparing to list a home owned by a married couple, Tom and Gina. Tom tells the broker that Gina is out of the country and cannot sign the listing agreement right now, but that he has full authority to sign on her behalf. The broker proceeds with only Tom's signature on the listing agreement. Which of the following is the most significant risk in this situation?

Correct Answer

D) The broker may be unable to complete the transaction if Gina refuses to sign the deed, because both spouses must consent to convey community real property

Even if the listing agreement is signed by only one spouse, the actual conveyance of community real property requires both spouses to sign the deed. If Gina later refuses to cooperate, the sale cannot be completed. The broker's most significant practical and legal risk is that the transaction will fall through at closing because Gina's signature on the deed is legally required under Washington community property law (RCW 26.16.030). A prudent broker should obtain both spouses' signatures on the listing agreement and confirm both will sign the deed.