Is it permissible to include a self-renewing clause in a listing agreement?

Including a self-renewing clause in a listing agreement is generally not permissible because it can lead to legal and ethical complications. A self-renewing clause allows a contract to automatically renew after its initial term without requiring explicit consent from the parties involved. This can create issues around transparency and informed consent, particularly for sellers who may not be aware they are bound to an agreement longer than they intended.

In real estate, clarity and mutual agreement on terms are essential to protect the interests of all parties involved, including the seller and the broker. It is important for both parties to consider and negotiate the terms of the agreement actively, rather than having a contract that extends automatically without discussion.

While negotiable clauses can sometimes exist in other types of agreements, the nature of listing agreements prioritizes active engagement and consent, making the inclusion of a self-renewing clause inappropriate in this context.