BILL NUMBER: S7499

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the real property law, in relation to the definition and
term of real estate listing agreements

 
PURPOSE:

To place reasonable limits on the length of residential listing agree-
ments and ensure homeowners retain control over the sale or lease of
their property.

 
SUMMARY OF PROVISIONS:

* Limits the term of any residential listing agreement to no more than
two years.

* Deems any contract exceeding that period unenforceable.

* Permits renewal of listing agreements before or upon expiration, if
              

agreed to by the property owner.

* Prohibits automatic renewals of exclusive listing agreements.

 
JUSTIFICATION:

Most homeowners only sell a property once or twice in their lifetime.
When they sign a listing agreement with a real estate broker, they're
entering a legal contract-often under time pressure or with limited
understanding of what's negotiable. These agreements can include long
terms, vague renewal provisions, or even automatic extensions that home-
owners may not be fully aware of when signing. In some cases, property
owners find themselves locked into contracts for years, even if the
broker is no longer actively marketing the property or the relationship
has broken down.

This bill addresses that imbalance. It sets a reasonable two-year cap on
the length of a residential listing agreement and prohibits exclusive
agreements from rolling over automatically. These are modest, common-
sense consumer protections that ensure homeowners maintain control over
who represents their interests and for how long.  Uncapped or open-ended
contracts distort the market by discouraging competition. When brokers
know they have a client tied up indefinitely, there may be less incen-
tive to maintain a high level of service. And when homeowners feel stuck
in an agreement they can't easily get out of, it undermines confidence
in the real estate process. By contrast, time-limited agreements promote
a healthier market dynamic: brokers are motivated to perform, and home-
owners retain the ability to reassess and make changes if needed.

Nothing in this bill prevents a homeowner from renewing a relationship
with a trusted broker. But it ensures that such renewals are intention-
al-not automatic. Especially in an industry where many deals hinge on
trust and transparency, this reform offers both brokers and clients a
clearer, more equitable framework. These updates reflect a modem under-
standing of consumer protection, one that respects the stakes involved
in selling a home and creates a fairer playing field for all parties
involved.
 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become law.