What should you prepare if the seller dies during a brokerage contract?

In the event that a seller dies during a brokerage contract, it is necessary to prepare an AM form, specifically a "Declaration of the Seller's Death" form. This form is crucial as it formally acknowledges the death of the seller and outlines how the brokerage should proceed in light of this significant change. It serves to ensure that all parties involved, including the buyer and any legal representatives, are aware of the seller's death and can adjust their actions accordingly.

Completing this form is part of the legal and ethical responsibilities of a real estate broker, ensuring compliance with relevant laws and regulations surrounding the brokerage's operations. By formalizing the seller's death, the brokerage can properly address subsequent contractual obligations or any changes in the sales process that may need to occur due to the seller's passing.

While notifying the buyer of the death is important, it is ultimately the AM form that serves as the official documentation required in such situations. Other choices, like completing a new sales agreement or revoking the brokerage license, are not appropriate responses to the situation at hand. A new sales agreement would be unnecessary until the estate of the seller is settled, and revoking a brokerage license is unrelated to the seller’s death under normal circumstances.