What happens to a listing agreement when a property is taken by eminent domain?

When a property is taken by eminent domain, the listing agreement is terminated. This occurs because eminent domain involves the government acquiring private property for public use, which effectively removes the property from the market. Since the property is no longer available for sale under the original terms of the listing agreement, and the seller is unable to fulfill the contract in relation to the property, the agreement ceases to exist. This termination happens automatically as the property is no longer in the seller's possession or control, which would make it impossible to complete any transactions related to it under the normal selling process.

The other options do not accurately reflect the legal ramifications of eminent domain. The notion that the listing agreement becomes null and void or continues until the seller decides does not align with property law in the context of eminent domain, as the government's action directly affects the ownership and availability of the property. Similarly, the idea that the agreement is transferred to the new owner is irrelevant, as the government takes possession through the eminent domain process, thus negating the previous listing arrangement entirely.