In a real estate transaction, what happens to existing sales contracts if a broker dies?

In a real estate transaction, when a broker dies, the Nebraska Real Estate Commission (NREC) plays a critical role in managing the continuation of any existing sales contracts. The NREC has established procedures to ensure that transactions are not abruptly halted due to a broker's passing.

When a broker dies, the Nebraska Real Estate Commission can appoint a temporary broker to oversee the pending contracts and ensure the integrity of the transactions. This temporary broker acts in a fiduciary capacity to manage the contracts until a new, permanent broker can take over or the existing contracts can be resolved. This provision is in place to protect the interests of all parties involved in the real estate transactions, ensuring that agreements remain enforceable and that clients are not left without representation.

The other answer choices do not accurately reflect the regulatory framework or the protections provided to both buyers and sellers in the event of a broker’s death. Simply voiding contracts or declaring them invalid would not serve the public's interest or maintain the stability of the real estate market. Furthermore, the automatic transfer of contracts to another broker is not a typical practice, as such transfers require oversight to ensure all legal and ethical obligations are still met.