If a seller signs a listing agreement with a brokerage, but dies before any offers have occurred, is the contract binding on the heirs of the seller to continue offering the property for sale?
If the same thing happens but with an offer situation, what are the rights of the buyer(s)?
In case where the same thing happens but with a buyer client, my guess is the contract is null and void. However, if a buyer’s offer is accepted but a death occurs before closing would this still be void? What are the rights and options of the seller(s)?
The agreements never become null and void, whether they be listings, Buyer Representation Agreements or Agreements of Purchase and Sale.
They continue until completed, terminated or expired.
The Estate can accept an Offer immediately after death, if there is a Will.
If there is no Will, then the estate must await a Court appointed Trustee, to act.
It is also important to note that the transaction cannot be closed until the Estate Trustee has been appointed. So, that will affect the choice of the closing date.
Brian Madigan LL.B., Broker