The expiration clause, or protection period, can be any time period from zero to 365 days. There is often a correlation between the amount of marketing that a broker does for the seller and the length of time of the protection period.
Sellers who insist on a short expiration period will usually draw question from the Realtor about why. As the earlier posters have explained, if a seller relists the property with another Broker, the expiration clause is automatically terminated. This clause only applies when the property is not relisted, and a buyer who saw the property during the time it was represented by the named Broker contracts to buy the property after the listing contract expires.
Often, 30 days is considered to be unreasonably short by Brokers. It would be easy for unethical buyers and sellers to wait it out to Day #31, and execute a contract. By and large, most people are honestâ€¦.and that probably holds true within real estate as well as other industries. Unfortunately, our law books are thick with rules because of the actions of a few. The same holds true in real estate. The dishonest few are the reasons we have fine print in contracts. If you have a Broker who invests little into marketing the listing, he/she will probably be willing to keep the expiration period quite short. If the Broker has invested heavily in the marketing of your property, chances are there will be a higher expectation of a longer expiration clause/protection period.
I have heard sellers boast when they achieve short listing contracts, or short protection periods. In instances such as this, I have also noticed the Broker has minimized investment and risk on the property, The boastful seller may have lost far more than he/she gained in their negotiations.
What I suggest is that a seller engage a listing contract with a protection period of reasonable length, have details about the services and representation be drafted into the contract, and have a termination clause, if, indeed, the Broker fails to deliver. Sellers typically are apprehensive of getting stuck in an undesirable or unproductive contract. We have found that this type of arrangement with clear details, and an escape clause for non-performance delivers a win-win for all parties.
Best of Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey