Under what condition would a listing agreement NOT terminate?

A listing agreement is a contract between a property owner (the principal) and a real estate broker to market and sell a property. The termination of this agreement is typically affected by various conditions, including the death of the principal or the broker, and in certain situations, bankruptcy.

When a salesperson dies, it does not lead to the automatic termination of the listing agreement. This is because the salesperson is generally an agent working under a broker's license. The agreement is between the principal and the brokerage firm rather than with an individual salesperson. Therefore, as long as the brokerage is still operational and has a licensed broker available to manage the transaction, the listing agreement remains valid. The brokerage can assign another salesperson to handle the listing, ensuring continuity in the process.

In contrast, the death of the principal or the broker, or the bankruptcy of the seller, typically results in the termination of the listing agreement since these events impact the parties directly involved in the contract. The principal’s death removes their ability to engage in the contract, while the broker's death affects the agency’s capacity to fulfill the terms of the agreement. Bankruptcy can also terminate agreements as it changes the buyer's legal standing regarding their capacity to sell the property.