The seller and the listing broker have agreed to provide in the listing agreement for an automatic 60-day renewal provision.
Can a listing agreement provide for an automatic 60-day renewal provision similar to property management agreements?
All real estate employment agreements, including listing agreements, must have a definite inception date and expiration date. A.R.S.§ 32-2151.02(A)(3). Although property management agreements can have an automatic renewal provision under certain circumstances, a property management agreement is not a real estate employment agreement as defined by A.R.S.§ 32-2151.02(E). A listing agreement therefore cannot contain an automatic renewal provision.
Note: Property management agreements may contain an automatic renewal provision only if “the property management firm sends the owner a notice at least thirty (30) days before the renewal date.” A.R.S.§32-2173(A)(2)(a).