If a licensee wants to extend a listing that is about to expire by offering to purchase the property, what must they do?

For a licensee wishing to extend a listing by offering to purchase the property, the correct approach is to enter into a written contract to purchase that clearly outlines all the terms and conditions of the transaction, including the purchase price. This is essential for several reasons.

Firstly, having a written contract provides legal clarity and enforceability, ensuring that both the licensee and the seller understand their obligations and the specifics of the transaction. It establishes a formal agreement that articulates the intentions of both parties and serves as a safeguard against potential misunderstandings or disputes that could arise from verbal agreements.

Moreover, documenting the terms of the purchase at the time of negotiating the extension of the existing listing is vital to maintain transparency and to comply with real estate regulations. This formal written agreement can help avoid any implications of unethical practices, such as the risk associated with undisclosed dual agency. By being clear about the terms of the purchase and having everything documented, the licensee ensures adherence to ethical standards and legal requirements in real estate transactions.

In contrast, the requirement to purchase the property at the listed price by the expiration date lacks the necessary legal formality of a contract and does not account for all terms and conditions that should be outlined. The suggestion to avoid entering into this agreement due