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In this video, the instructor explains the difference between "canceled" and "withdrawn" listings in real estate. A canceled listing occurs when the listing agreement is completely terminated by mutual agreement between the seller and the listing broker, indicating that all activity related to selling the property has ceased. Conversely, a withdrawn listing suggests that while marketing and showing of the property has stopped, there are still unresolved issues or business matters between the seller and the listing broker that need to be settled. Thus, understanding these distinctions is crucial to avoid misuse of the terms.