Principles of Real Estate 1

GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE.

(1) acts negligently or incompetently; (2) engages in conduct that is dishonest or in bad faith or that demonstrates untrustworthiness;

Blockbusting

Any attempt to induce panic selling in a neighborhood for financial gain. The most common tactic is to imply the entrance into the neighborhood of a new ethnic or racial group, and suggest to homeowners that they sell now, "While values are still high." Blockbusting is also known as panic peddling.

8. Legal descriptions and when/how they are used - page 198 LOT AND BLOCK

Commonly used in residential subdivisions and commercial developments, the lot and block method of describing land most often refers to a recorded map or plat.

Restrictive Covenants

Control the use of the property in terms of architectural style, setbacks, landscaping, and minimum square footage. Also referred to as deed restrictions or Covenants, Conditions, and Restrictions (CC&Rs)

Littoral Rights

Give an owner the right to use water from a lake, ocean, or sea on or next to the property.

Riparian Rights

Give an owner the right to use water from a river or a stream on or next to the property

3. Emblements/crops - page 29 Emblements

Shrubs, trees, and landscaping, considered improvements and go with the property. Even though they are attached to the land, are considered personal property.

Freehold Estate

When an individual owns real property, he is said to have a freehold estate in that property. Ownership of property includes certain rights or privileges. In addition to the rights of ownership, benefits, or amenities are often connected to the ownership of property. Because ownership rights do not expire, the freehold estate is of indeterminate length.

FIXTURES VS. TRADE FIXTURES

When tenants add fixtures to leased property, the fixtures generally become the property of the landlord. Trade fixtures are an exception to this rule. Trade fixtures are items necessary for an individual to carry out his or her trade or profession.

1. Intention of the parties

When the item was installed is often considered to be the most important test. If the item in question were never intended to be permanent, the courts would undoubtedly give this considerable weight in deciding. The intention will be judged not only by the statements of the owner, but also by the relationship of the parties to the item, and the purpose and use for which the article was attached.

TREC-promulgated contract forms

When the sale finally closes, the contract is fully executed. However, according to the TREC-promulgated contract forms, all representations made by seller and buyer "survive closing," which means that both parties remain liable beyond closing for their representations made in the contract.

3. Adaptation to the property

refers to how the item fits the property. A custom-measured and installed fireplace screen would be considered permanent as compared to an all-purpose, one-size-fits-all screen that simply stands in front of the fireplace.

9. The IABS form and the required use - page 91 INFORMATION ABOUT BROKERAGE SERVICES (IABS)

(IABS) provides consumers with necessary information regarding agency relationships with license holders. All potential parties to a transaction must be provided with the IABS at the first substantive discussion of a possible transaction. A substantive discussion does not always occur at the first face to-face meeting. A discussion can become substantive during conversations via phone, e-mail, or other means of communication. Should be provided to a seller prior to a listing presentation, and to a buyer prior to showing a property or discussion of a possible purchase. Must contain the language specified in the License Act and must be printed in no less than 10-point type

10. TRELA - its purpose - page 101 Texas Real Estate License Act

(TRELA) was passed in 1939. The purpose of the Act is to protect the public against unscrupulous brokers and sales agents. Since it went into effect, it has been unlawful for anyone to "act in the capacity of, engage in the business of, or advertise or hold himself out as engaging in or conducting the business of a real estate broker or a real estate sales agent within this state without first obtaining a real estate license from the Texas Real Estate Commission."

The law prevents the forced sale of the homestead for payment of all debts, with five exceptions:

1. Non-payment of property taxes 2. Non-payment of a mortgage lien 3. Non-payment of mechanic's and materialman's lien 4. Non-payment of property owner association fees or dues 5. Non-payment of a home equity loan

There are two key points concerning agency:

1. The principal will count on the agent for specific professional advice. The agent is the "expert." 2. The relationship almost always involves money or property. As a fiduciary, the agent must work in his or her client's best financial interests at all times.

When a brokerage firm sells a property, two possibilities exist:

1. The property is sold by a firm other than the listing firm, which is referred to as a cooperative sale. 2. The property is sold by the listing firm, which is referred to as an in-house sale.

A license holder is not required to provide the Information About Brokerage Services if:

1. The proposed transaction is for a residential lease for not more than one year, and no sale is being considered; or 2. The license holder meets with a party who is represented by another license holder. 3. The communication occurs at a property that is held open for any prospective buyer or tenant, and the communication concerns that property.

Two simple guidelines used to determine if a transaction is to be done under intermediary rules:

1. The transaction must be an in-house sale. 2. Both sides (buyer/seller or landlord/tenant) must be clients.

There are some exceptions to the requirement for completion of a Seller's Disclosure Notice, including sales:

1. pursuant to a court order or foreclosure sale 2. by a bankruptcy trustee 3. to a lienholder by the owner of a property 4. by a mortgagee (lender) who has acquired the property through a foreclosure or a deed in lieu of foreclosure 5. by a fiduciary (e.g., an executor, trustee or guardian) in the course of administration of a decedent's estate, guardianship, conservatorship or trust 6. from one co-owner to one or more other co-owners 7. to a spouse or a person in the lineal line of consanguinity (e.g., parents, grandparents, children) of one or more of the transferors 8. between spouses resulting from a divorce decree or a property settlement agreement incident to a divorce decree 9. to or from any governmental entity 10. of a new residence which has not previously been occupied for residential purposes 11. where the value of the dwelling does not exceed five percent of the value of the property

ARTICLE 3. COMPETENCY

A license holder is obligated to be knowledgeable and competent as a real estate brokerage practitioner.

Life Estate and Life Tenant

A life estate is ownership for the duration of someone's life. The owner is called the life tenant. He or she has all the rights and privileges, duties, and responsibilities of a fee simple owner, except that the ownership terminates upon the death of the life tenant.

NAR (National Association of Realtors)

A professional association whose local affiliates own and operate MLS systems throughout the United States

18. Stigmatized properties - causes - page 227 ADDITIONAL DISCLOSURE ISSUES - Stigmatized

A property where there has been a murder or alleged haunting is called stigmatized. A property can be considered stigmatized if it is in the vicinity of the residence of a known sexual offender.

ARTICLE 2. INTEGRITY

A real estate broker or sales agent has a special obligation to exercise integrity in the discharge of his or her responsibilities, including employment of prudence and caution to avoid misrepresentation, in any way, by acts of commission or omission.

ARTICLE 1. FIDELITY

A real estate broker or sales agent, while acting as an agent for another, is a fiduciary. Special obligations are imposed when such fiduciary relationships are created.

Homestead protection limitations

A rural homestead is limited to 200 acres for a family unit and is limited to 100 acres for an individual. If a family lives on property greater than 200 acres, they may designate 200 (including the house) acres as a homestead. An urban homestead is limited to ten acres of land and the improvements on it. Homestead protection is limited to one property per person or family

3. Estate at will

A very loose agreement. Either the landlord or tenant may agree to terminate the lease "at will." Little or no notice may be required depending on the lease agreement. This lease is the only one that easily terminates on the landlord's death or sale of the property. All other leases would remain in effect and binding on the new owner.

24. Canons of ethics definitions - page 173 CANONS OF PROFESSIONAL ETHICS AND CONDUCT

All license holders are required to adhere to the provisions of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission. The Act and the rules describe a wide range of lawful and unlawful behavior. The requirement that brokers ethically do business imposes far more than a strict application of rules and laws. Ethics is defined as a set of moral principles, and as a theory or system of moral values. A business practice may not be ethical, even if it is legal.

Steering

Also known as channeling, is taking buyers or renters to, or away from, a particular area based on the race, religion, etc. of the buyer or renter, and is the most common cause for complaint under the law. Steering can be blatant or quite subtle.

GOVERNMENT SURVEY SYSTEM

Also known as the Rectangular Survey System, and the Public Lands Survey System (PLSS), the Government Survey System was adopted by Congress in 1785. After the American Revolution, the United States Government was deep in debt and needed a way to compensate Revolutionary War soldiers for their service. As a result, the Government needed to survey and account for the vast lands to the west, commonly referred to as the "western frontier." The concept behind the system is the overlay of a grid upon the land, much like a chessboard. Each of the squares in the grid is given a name. Having drawn the grid pattern, the name assigned to each square will describe all of the property within.

7. Agency relationship termination - agent, broker, client, customer, subagent, principal - page 77 WHAT IS AGENCY?

An agency relationship exists when one person (the agent) acts for or on behalf of another person (the principal). The principal hires and gives authority to the agent. The agent represents or works for the principal. In other words, the principal gives the power, and the agent acts. The principal is also known as the client.

ENTITLEMENT TO REIMBURSEMENT

An aggrieved person is entitled to reimbursement from the trust account if a person engages in conduct that requires a license or certificate of registration under this, if the person is a license holder, if the person is a certificate holder.

CLAIM FOR PAYMENT FROM TRUST ACCOUNT

An aggrieved person who obtains a court judgment against a license or certificate holder for an act. After the 20th day after the date the aggrieved person gives written notice of the claim to the commission and judgment debtor, the person may apply to the court that entered the judgment for an order for payment from the trust account of the amount unpaid on the judgment. The aggrieved person and the commission may attempt to reach a settlement of the claim before setting a hearing before the court. If the aggrieved person does not schedule a hearing before the first anniversary of the date the application was filed, recovery is waived. The commission by rule may prescribe the actions necessary for an aggrieved person to demonstrate that the person has made a good faith effort.

5. Types of ownership or freehold estates - page 39 ESTATES IN LAND

An estate is the interest, or nature of the interest a person has in real property. There are four categories of estates.

25. Terminology associated with real property - fixtures, improvements, encumbrances, encroachments, additions - page 28 IMPROVEMENTS

Any permanent man-made addition to the land is considered to become part of the land is known as an improvement. Buildings, landscaping, fences, patios, decks, roads, curbs are all examples of improvements. When the land is sold or otherwise transferred to a new owner, improvements, unless expressly excluded, are included in the sale. When a deed is prepared, it is understood that the improvements do not have to be listed to be transferred to the new owner.

22. Texas Homestead rules - page 41 STATUTORY ESTATES

Are created by statute or law. The two most familiar to us in Texas are community property and homestead. Dower, curtesy, and tenancy by the entirety are recognized in other states.

Trade Fixture Examples would include:

Barber chairs, medical examining tables, grocer's refrigerated cases, and checkout counters. When a lease is about to expire, a tenant may remove these fixtures and take them to another location. The removal must be done prior to lease expiration, and the tenant must repair any resulting damage to the premises. If trade fixtures are not removed prior to lease expiration, they become the property of the landlord through the process of accession.

13. Intermediary and appointed associates - roles and responsibilities - page 86 INTERMEDIARY

Brokers have a conflict of interest when representing both sides of a transaction. The process is a set of rules that make it possible to bring client buyers and sellers together while at the same time representing their best interests. When this type of transaction occurs, the broker becomes the Intermediary. The broker must have the written consent of both parties, stating the source of any anticipated compensation. Agents most often obtain these consents in the listing agreement and the buyer representation agreement. TWO FORMS OF INTERMEDIARY

Tenancy as Sufferance

Created when a lease expires, and the tenant remains on the premises. This holdover tenant no longer has any right to remain on the property because he/she is not paying rent. The only thing that differentiates a holdover tenant from a trespasser is the former right to occupy the property. A landlord with a holdover tenant has the right to evict this tenant. The process would occur under the Forcible Entry and Detainer Statutes. If a landlord accepts rent from the holdover tenant, a holdover tenancy is created, which is sometimes considered a periodic estate.

Scrupulously

Defined as acting in strict regard for what is considered right or proper; punctiliously exact; painstaking.

Meticulously

Defined as marked by extreme or excessive care in the consideration or treatment of details; careful.

2. Types of leases and features - termination - page 40 Leasehold estates

Estate for years, periodic estate, estate at will, tenancy at sufferance

Homestead laws

Exist in many states (42) and generally have two main purposes. The first is to prevent the forced sale of the home by creditors, and the second to provide a surviving spouse with shelter. In Texas, homestead protection is automatic when a home is purchased, and no document or claim needs to be registered by the owner to get this protection.

20. Remedies for default of contract including types of damages - page 244 BREACH OF CONTRACT

Failure to perform is also commonly referred to as a breach of contract. When a party is in default or breach, the other party is known as the injured party. In responding to the default, the injured party has several options. The options are somewhat different depending on whether the buyer or the seller is in default.

COOPERATIVE SALE

If a property is listed by one firm and later sold by another, the sale is a cooperative sale.

16. Seller's Disclosure Notice exceptions - page 225 Deceptive Trade Practices Act (DTPA).

In Texas, the state law that most affects the brokerage business is the (DTPA). Many lawsuits relating to property condition issues are filed under the DTPA. When a property is listed, the seller generally prepares a Seller's Disclosure Notice. The Seller's Disclosure Notice is a good tool to use as a defense in a DTPA lawsuit.

Monetary damages

In addition to specific performance, the injured party may "seek such other relief as may be provided by law." Other relief would be an award of monetary damages by the court. Because the court awards monetary damages, one never knows what they will be until the court rules.

Megan's Law

Is a federal law requiring all states to release information to the public about known convicted sex offenders, when necessary, to protect the public's safety. Megan Kanka was a 7-year old girl who was murdered on July 29, 1994, in New Jersey. The law was created in response to her death.

4. Tenancy at Sufferance

Is created when a lease expires, and the tenant remains on the premises. This holdover tenant no longer has any right to remain on the property because he/she is not paying rent, and the landlord does not accept his or her presence. The only thing that differentiates a holdover tenant from a trespasser is the former right to occupy the property. A landlord with a holdover tenant has the right to evict this tenant. The process would occur under the Forcible Entry and Detainer Statutes. If a landlord accepts rent from the holdover tenant, a holdover tenancy is created, which is sometimes considered a periodic estate.

Periodic estate

Lease that automatically renews itself for like periods. Examples would be a month-to-month or a week-to-week lease. Undetermined period, with no preset termination date. The periodic estate requires notice to terminate, typically 30 days.

19. In-house vs cooperative sales - page 82 TYPES OF TRANSACTIONS

Listing side and Selling side

2. Selling side

Occurs when the buyer retains the services of a broker. The agent working with the buyer is referred to as the selling agent

1. Listing side

Occurs when the seller retains the services of a broker

12. Types of leases/leasehold estates - page 40 LEASEHOLD ESTATES

One interest in real property that is less than a freehold estate. A conveyance called a lease is used to create the leasehold estate. Gives possession and use of a property without ownership. During the term of a lease, the landlord has a reversionary interest in the property, meaning that possession will revert or return to him at the end of the lease. There are four categories of leasehold estates.

INTERMEDIARY WITH APPOINTMENTS

Our in-house sale involves two agents of Broker Bob - Sue with the seller and Bill with the buyer. In this situation, Broker Bob will most likely appoint Sue to represent the seller, and Bill to represent the buyer. The appointed associates will give advice and opinions (which means to negotiate) to their respective parties. The broker must make the appointments in writing. REALTORS® most often use the Intermediary Relationship Notice, which names the agents and assigns them to a specific party.

1. Real Estate business terminology - agency, brokerage, closings, sales - page 9 Brokerage

Overseeing the needs of the parties to a real estate transaction and seeing it to its completion

27. Fixtures - terminology - adding/removing - page 29 FIXTURES

Personal property that has become attached to the land in such a way as to become real property is called a fixture.

11. Fixtures - ownership and transfer - page 29 FIXTURES

Personal property that has become attached to the land in such a way as to become real property.

Appraisal

Providing a professional opinion of the value of real property

2. Method of attachment

Refers to how the item was attached to the property. If the attachment procedure can be considered permanent and it would damage the property to remove it, then the item is usually judged a fixture by this test. Items that have been cemented down, embedded in concrete, wired into the electrical system, or incorporated into the building, such as plumbing, doors, and windows are examples of permanent attachment.

Severance

Removing fixtures (by detaching them from real property or by uninstalling them) to create personal property.

Seller's Disclosure Notice

Seller is responsible for its accuracy. The agent's role is to encourage honesty and full disclosure. While it is a broker's responsibility to discover and disclose that there may be problems on a property, that responsibility is limited to areas accessible for visual inspection. Errors & Omissions insurance can protect a broker if the seller misrepresents property condition, the broker is unaware of the misrepresentation, and could not have detected it by visual inspection.

Estate for years

Tenancy for years, definite stated period of time. The term may be one year, one month, one week or even one day. No notice needed to terminate.

14. Fair Housing - prohibited activities - page 181 FEDERAL FAIR HOUSING LAWS

The Civil Rights Act of 1866 essentially prohibited discrimination in housing based on race or color by affording all persons in the United States the right to make and enforce contracts. The act made it clear that the law protects all people, regardless of race or color. It is a very broad law and is still in effect today.

Crops

The TREC promulgated farm and ranch contract provides that, when a property is sold, the seller has the right to harvest crops up to the delivery of possession of the property to the buyer. The parties can agree to modify this provision.

Accretion

The addition to the land by the action of water. Soil or rock is built up by the water. It is further described as alluvion.

Fee simple absolute or fee simple

The best type of ownership, as it places the least number of limitations on the owner. This ownership is said to be indefeasible, meaning it cannot be defeated unless someone has a more significant legal claim. Fee Simple ownership is always an estate of inheritance.

21. TREC Grounds for revocation or suspension of license - page 153-154

The commission may suspend or revoke a license issued under this chapter or Chapter 1102 or take other disciplinary action authorized.

6. TREC complaint rules and time limits - page 122 COMPLAINT INVESTIGATION AND DISPOSITION

The commission or commission staff may file a complaint and conduct an investigation as necessary. The commission may not conduct an investigation of a person licensed under this chapter or Chapter 1102 in connection with a complaint submitted later than the fourth anniversary of the date of the incident.

MANAGEMENT OF TRUST ACCOUNT

The commission shall hold money credited to the trust account in trust to carry out the purpose of the trust account. Money credited to the trust account may be invested in the same manner as money of the Employees Retirement System of Texas, except that an investment may not be made that would impair the liquidity necessary to make payments from the trust account as required by this subchapter. If the balance in the trust account on December 31 of a year is more than the greater of $3.5 million or the total amount of claims paid from the trust account during the preceding four fiscal years, the commission shall transfer the excess amount of money in the trust account to the credit of the general revenue fund.

4. Recovery Trust Account and payment limits - page 147-149 REAL ESTATE RECOVERY TRUST ACCOUNT

The commission shall maintain a real estate recovery trust account to reimburse aggrieved persons who suffer actual damages caused by an act, committed by: a license holder, a certificate holder, a person who does not hold a license or certificate and who is an employee or agent of a license or certificate holder.

Specific Performance

The injured party files a court action seeking an order of the court directing the defaulting party to perform according to the terms of the contract. Specific performance is the only remedy that would possibly result in the full execution (closing) of the transaction.

Title VIII of Civil Rights Act of 1968 (Federal Fair Housing Act)

The next major legislation affecting housing. It prohibits discrimination based on race, color, religion, and national origin. Had a significant impact on the real estate community. While there are some exceptions to this law, real estate license holders must ALWAYS comply. Sex was added as a protected class in 1974, followed by physical handicap and familial status in 1988.

2. Periodic estate

The periodic tenancy is a lease that automatically renews itself for like periods. Examples would be a month-to-month or a week-to-week lease. This type of lease is usually for an undetermined period, with no preset termination date. Sometimes an estate for years will state that if a tenant remains after the termination date, the lease will become a periodic tenancy on a month-to-month basis. The periodic estate requires notice to terminate, typically 30 days.

Lessor

The person giving the use (the owner, landlord)

23. Ad valorem taxes - page 38 Taxation

The right the government retains to tax real property. When the king first gave individuals the right to own land, it was because land was the primary source of wealth to everyone due to the agrarian-based economy of the time. Those who had land had wealth. In addition, land, in contrast to other types of assets, cannot be hidden. Property taxes are ad valorem taxes. That is, they are according to value. The greater the value of the property, the higher the taxes.

Liquidated Damages

The seller can choose to accept the buyer's earnest money as liquidated damages, releasing all parties from any further obligation under the contract.

Alluvion

The soil added to the land by the accretion.

1. Estate for years

The tenancy for years is any lease with a specific starting and ending date. The tenancy could be a lease for a week, a month, one year, or ten years. The key is the preset time period. No notice is required for this estate to end. The lease sets a specific termination date. This lease survives death or the sale of the property.

Lessee

The tenant

26. Water rights terminology - page 47 WATER RIGHTS

The water may be used for domestic purposes and may not be contaminated. The flow of the water may not be interrupted. The right to use water is a valuable asset, and in many states, it is not an automatic right. These rights do not allow a claim of ownership of the water, and the state may refuse to grant water rights if there is a scarcity or shortage of water. For non-navigable waters, landowners may own to the middle of the body of water. For navigable waters, landowners own to the vegetation line. In Texas, most surface water is owned by the state.

"bundle of rights"

These rights include such things as the right to possess or occupy and use the property, the right to exclude others, the right to sell, lease, mortgage, give away, or abandon property, the right to pass property to heirs and devisees, or the right to refuse to do any of these things.

Annexation

This process of attaching personal property so that it becomes real property.

17. Fair Housing and Senior Housing - familial status exemption requirements - page 185 HOUSING OPPORTUNITIES FOR FAMILIES

Unless a building or community qualifies as housing for older persons, it may not discriminate based on familial status. That is, it may not discriminate against families in which one or more children under 18 live with: • A parent; • A person who has legal custody of the child or children; or • The designee of the parent or legal custodian, with the parent or legal custodian's written permission. • Pregnant women and anyone securing legal custody of a child under 18.

Estate at will

Very loose agreement. Either the landlord or tenant may agree to terminate the lease "at will." Little or no notice may be required depending. This lease is the only one that easily terminates on the landlord's death or sale of the property.

Examples of fixtures include:

Wall-to-wall carpeting, ceiling fans, window coverings, and built-in appliances. Fixtures are generally considered to be part of the real property and are transferred to the new owner unless specifically excluded. The courts apply three tests to determine if something is a fixture or personal property. Note that the cost of the item is not one of the tests of a fixture.

Reliction

Water recedes and dry land appears

Avulsion

Water washes away the land from one property and deposits it on another. This can be accomplished by the change in the direction of a river or a stream.

IN-HOUSE TRANSACTIONS

When a brokerage sells its listing, it is known as an in-house sale. The transaction still has two sides, and we say that the broker is on both the listing and the selling side of the transaction

Default

When a party to a contract fails to perform under the contract, they are in default.

INTERMEDIARY WITHOUT APPOINTMENTS

With her broker's permission, Agent Sue can go ahead and complete the transaction, but cannot give advice and/or opinions to either party. Sue is an intermediary representative of her broker and cannot negotiate for one client to the detriment of the other client. When the intermediary process begins, the parties must be notified and appointments made (if any). In this case, there will be no appointments because there is only one agent in the transaction

Several words are used to describe the effect of water on land. These words and brief definitions are:

• Accretion • Alluvion • Avulsion • Reliction All of these are natural causes of involuntary alienation.

When the broker receives notice of termination, the broker must:

• Cease all marketing activities. • Remove signs and lockboxes. • Remove the listing from websites and other advertising media. • Terminate the listing in MLS. Note that a "Withdrawal" would not comply with this requirement. The listing must be terminated. In MLS, a withdrawal removes the listing from the market but does not terminate the listing.

REQUIREMENTS OF A VALID LEASE

• Competent Parties (lessor and lessee) • Let and take agreement • Adequate consideration (rent) • Legal purpose • Description of the property (street address is sufficient)

Housing for older persons is exempt from the prohibition against familial status discrimination if:

• HUD has determined that it is specifically designed for and occupied by elderly persons under a federal, state or local government program; or • It is occupied solely by persons who are 62 or older; • It houses at least one person who is 55 or older in at least 80 percent of the occupied units and adheres to a policy that demonstrates an intent to house persons who are 55 or older.

In order to determine if it is Intermediary With or Intermediary Without Appointments, use the following rule as a guide:

• If one agent is involved, that is, one agent is selling his or her own listing to his or her own buyer, it will be Intermediary Without Appointments. The agent will not provide advice or opinions to the parties. The parties must be notified in writing. • If two agents from the same brokerage are involved, one working with the seller and the other with the buyer, we will probably have Intermediary With Appointments. The agents will provide both advice and opinions to their respective parties, and the appointments must be made in writing. Intermediary rules prevail, meaning that if a broker represents both sides of a transaction, he or she must do so as an Intermediary and comply with all of the provisions of TRELA.

BUYER DEFAULT

• Liquidated damages. • Monetary damages. • Specific performance The primary difference between monetary and liquidated damages is that the court awards monetary damages, and liquidated damages are stipulated in the contract.

Seller Default

• Refund of earnest money. The buyer's acceptance of an earnest money refund terminates the contract, releasing both parties from any further obligation under the contract. Because this is a refund of the buyer's earnest money, this cannot be considered liquidated damages. • Monetary damages (see above). • Specific performance (see above)

15. Listing agreement termination - page 209 TERMINATION OF LISTINGS

•When the purpose of the agency is completed (i.e., the property is sold) • The expiration of the period stated in the listing contract • At any time by mutual rescission • Death or incapacity of either party • Condemnation or destruction of the property • Bankruptcy of either party • Revocation of the broker's license • Abandonment by the agent • At any time by broker or principal