A broker obtains a listing from a seller with whom the broker has no prior relationship. The designated broker advises cancellation due to past dealings. Which statement is true?

• A. The listing belongs to the brokerage, so the broker should renounce it
• B. The listing can be canceled by the broker on their own
• C. The seller can compel immediate cancellation
• D. The listing is void and may be resold

Answer: (A)

In real estate practice, the listing agreement is a contract between the seller and the brokerage, not with an individual agent. The brokerage holds the listing, and the designated broker oversees it. Because there’s no prior relationship with the seller, the firm may choose to withdraw to avoid potential conflicts, and that withdrawal is done by renouncing the listing. An agent can’t cancel the listing on their own, and the seller can’t usually force an immediate cancellation unless the contract explicitly allows it or both parties agree to terminate. The listing isn’t void simply because the broker recommends cancellation, and it isn’t automatically “resold” without a new agreement or a termination of the existing one. So the correct takeaway is that the listing belongs to the brokerage, and the broker should renounce it.