What happens to a seller agency agreement if the property is destroyed before closing?

In the context of real estate transactions, if a property is destroyed before closing, the seller agency agreement is typically terminated by force of law. The reasoning behind this is that the subject matter of the agreement – the property – no longer exists. A seller agency agreement is contingent upon the sale of a specific property, and if that property is no longer viable for sale due to destruction, the agreement cannot be fulfilled.

This principle aligns with contract law, where agreements often hinge on the existence of specific conditions or objects. In real estate, such conditions include the property's physical presence. Once that presence is lost, the obligations of the seller agency agreement cease, as there's nothing left to sell and no transaction can occur.

Renegotiating or continuing the agreement would not generally apply since the fundamental basis of the contract is no longer intact. Similarly, assigning the agreement to another agent does not address the fundamental loss of the property itself. Thus, termination by force of law is the most accurate outcome in this scenario.