What might happen if a client terminates a listing agreement before its expiration?

When a client decides to terminate a listing agreement before its specified expiration date, it can lead to the client potentially owing a commission to the agent. This situation arises because, depending on the terms of the listing agreement, there may be specific provisions that stipulate the client's obligations in the event of early termination.

For instance, if the agent has already incurred expenses or invested time in marketing the property or has secured interest from potential buyers, the client may still be liable for paying a commission regardless of the termination. Additionally, if the agent has performed services that could lead to a sale during a certain period post-termination, the client might owe a commission if a sale occurs as a result of those efforts. Therefore, it is important for clients to carefully review their listing agreements and understand any potential financial implications of terminating the agreement early.

The options related to exemptions from fees, automatic renewals, or immediate cancellation without consequences do not accurately reflect the typical outcomes of terminating a listing agreement prematurely.