Which of the following statements is false regarding Beth's listing agreement after six months?

Which of the following statements is false regarding Beth's listing agreement after six months?

• A. A. Beth could choose to renew the listing
• B. B. The listing agreement could include an automatic renewal clause
• C. C. If there's a broker protection clause, Hillside could still earn commission
• D. D. The listing agreement automatically terminates

Answer: (B)

The statement that the listing agreement could include an automatic renewal clause is indeed the false one because, in Arizona, real estate listing agreements typically do not automatically renew unless expressly stated and agreed upon within the contract. If a listing agreement has a fixed term and does not include an automatic renewal clause, it simply expires at the end of that term without further action needed from either party. On the other hand, when a listing agreement reaches its expiration term—like six months in this case—it does not necessarily mean that the agent cannot continue to work with Beth. She has options, such as the ability to renew the listing at her discretion, or if a broker protection clause is included in the original agreement, the broker may still be entitled to a commission for a transaction that was initiated during the listing period, even after the agreement has expired. Therefore, understanding the terms and implications of these clauses is crucial when engaging in real estate contracts.

The statement that the listing agreement could include an automatic renewal clause is indeed the false one because, in Arizona, real estate listing agreements typically do not automatically renew unless expressly stated and agreed upon within the contract. If a listing agreement has a fixed term and does not include an automatic renewal clause, it simply expires at the end of that term without further action needed from either party.

On the other hand, when a listing agreement reaches its expiration term—like six months in this case—it does not necessarily mean that the agent cannot continue to work with Beth. She has options, such as the ability to renew the listing at her discretion, or if a broker protection clause is included in the original agreement, the broker may still be entitled to a commission for a transaction that was initiated during the listing period, even after the agreement has expired. Therefore, understanding the terms and implications of these clauses is crucial when engaging in real estate contracts.