Tennessee Real Estate Exam Practice Question
Which clause in a listing contract automatically terminates the listing when the property is sold?
Correct Answer: C
Rationale: In a listing contract, the clause that automatically terminates the agreement upon the sale of the property is the sale of the property itself. This means that once the property is sold, the listing agreement is fulfilled, and no further obligations exist.
Option A, the expiration date, refers to a predetermined end date for the listing but does not directly relate to the sale of the property. Option B, listing of the house, is vague and does not specify any termination condition. Option D allows the seller to cancel the contract but does not guarantee termination upon sale, making it less relevant to the question.
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