Can a written brokerage agreement be automatically extended?

A written brokerage agreement typically does not automatically extend beyond its initial term unless otherwise specified within the agreement itself. This principle is rooted in the need for clarity and mutual consent in contractual agreements. In real estate, it's important for both parties—the broker and the client—to be fully aware of the terms and conditions, including the duration of their commitment. If a brokerage agreement were to automatically continue without a clear understanding or explicit agreement, it could lead to confusion and potential disputes regarding ongoing services and responsibilities.

While some contracts might include a clause that outlines extensions or renewals, absent that specification, the default expectation is that the agreement will terminate at the end of the defined period. This ensures that clients have the option to review their needs and potentially renegotiate terms, rather than being bound to a continuing relationship without their consent or awareness.