What typically happens to a listing agreement once the property is sold?

Once a property is sold, the listing agreement is typically terminated. This occurs because the purpose of the listing agreement is fulfilled once the transaction is completed; the property has been sold, and the obligations defined in the listing agreement have been satisfied. The real estate agent has executed their role in facilitating the sale of the property, and therefore, there is no longer a need for the agreement to remain active.

In general, listing agreements are specific to the sale of a particular property for a designated time frame or until a sale occurs. After the property is sold and closed, the contractual relationship created by the listing agreement ends, freeing both parties from any further obligations to one another under that specific agreement. This understanding is a common practice in real estate transactions, ensuring clarity and finality once a property changes ownership.