Which Statement about Listing Agreements in California Is True

Real estate agents and brokers in California are required to enter into listing agreements with their clients before they can market and sell a property on their behalf. These agreements outline the terms and conditions of the agent-client relationship, including the commission rate for the agent`s services. However, not all listing agreements are created equal, and it`s important to understand the nuances of California real estate law to ensure you`re getting the best deal possible.

With that in mind, which statement about listing agreements in California is true? Here are a few potential contenders:

1. A listing agreement must be in writing to be enforceable.

True. In California, all listing agreements must be in writing to be legally binding. This includes both exclusive and non-exclusive agreements. Oral agreements are not enforceable in court, so it`s essential to get everything in writing to avoid any disputes down the line.

2. A listing agreement must include a termination date.

True. All listing agreements in California must specify a termination date. This is typically a set number of months after the agreement is signed, although it can be extended by mutual agreement between the parties. The termination date is important because it ensures that the agent`s authority to act on the client`s behalf is not indefinite.

3. A listing agreement can`t be canceled by the client once it`s signed.

False. While listing agreements are legally binding contracts, clients do have the right to terminate the agreement at any time, for any reason. However, if the client does so without cause, they may still be obligated to pay the agent`s commission for any work done up to that point.

4. A listing agreement can`t be canceled by the agent once it`s signed.

False. Like clients, agents also have the right to terminate a listing agreement at any time, for any reason. However, they must provide notice to the client and may be liable for damages if they breach the terms of the agreement.

5. A listing agreement must include a specific commission rate.

True. California law requires that listing agreements specify a commission rate, which is typically a percentage of the sale price of the property. The commission rate is negotiable between the agent and the client, but it must be agreed upon in writing.

In conclusion, the statement about listing agreements in California that is true is that all listing agreements must be in writing to be enforceable. It`s important to carefully review your listing agreement before signing, and make sure you understand all of the terms and conditions, including the commission rate and termination date. Working with an experienced real estate agent or attorney can help ensure that you get the best deal possible and avoid any legal disputes.

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