Are You Selling A Manhattan Apartment? Must Read!
Should a Manhattan real estate broker require an expiration date on their exclusive?
If a real estate brokerage agreement contains no term as to its duration, a reasonable duration may be implied by a court. In the context of real estate brokerage agreements without a term, courts have implied terms of not more than one year. The duration of the agreement may be determined by reference to the continued existence of the parties’ relationship. Furthermore, where an employment contract (i.e. a real estate brokerage agreement) is for an indefinite term, a court may interpret the agreement as a “contract at will”, which can be freely terminated by either party upon reasonable notice to the other. However, as stated above, a court may inquire into the intent of the parties and supply the missing term if the duration of the agreement can be fairly and reasonably fixed by the surrounding circumstances and the parties’ intent.
Important Tip: The term of a real estate brokerage agreement, including any extensions, should always be stated in the real estate brokerage agreement in order to clearly define the parties’ respective rights and obligations. Clearly defining the parties’ respective rights and obligations will help ensure that a Manhattan real estate broker has an enforceable real estate brokerage agreement.