California Real Estate Practice Exam

What is a requirement for an exclusive listing agreement to be valid?

1. An indefinite termination date

2. A definite termination date

3. Monthly renewal

4. No termination date

The correct answer is: A definite termination date

A requirement for an exclusive listing agreement to be valid is a definite termination date. This means that the agreement should clearly state the date on which the agreement will end, providing a clear timeline for both parties involved. This helps avoid any confusion or disputes over the duration of the agreement. The other options, including an indefinite termination date, monthly renewal, and no termination date, are incorrect because they do not provide a definite and specific end date for the agreement. In an indefinite termination date, the agreement could theoretically go on forever, causing uncertainty and potentially legal issues. Monthly renewal also does not provide a clear end date and could potentially lead to a continuous and unending agreement. And finally, a no termination date would mean the agreement has no end, which is not a typical or acceptable arrangement. Therefore, a definite termination date is the most important requirement for a valid exclusive listing agreement.