Oregon Real Estate Practice Test

Can a listing contract have an open expiration date?

1. Yes, that is permitted

2. No, it must contain a specific expiration date

3. Only if agreed upon by both parties

4. Only in certain types of listings

The correct answer is: No, it must contain a specific expiration date

In the context of real estate practice, a listing contract must contain a specific expiration date. This requirement serves to protect both the seller and the broker by providing a clear timeframe for the listing agreement. Having a defined expiration date ensures that both parties understand the duration of their engagement in the transaction. It also allows for a clear termination point, after which the broker is no longer authorized to represent the seller or market the property. An open expiration date could lead to ambiguity and potential disputes regarding the continuation of the agreement. Without a specific end date, it might be unclear when the broker's responsibilities cease, which could lead to misunderstandings about commissions and obligations once a property is sold or if the seller decides to withdraw the property from the market. While there may be instances where both parties agree to a flexible arrangement, the overall standard practice in Oregon's real estate framework mandates that all listing contracts explicitly state an expiration date to maintain clarity and protect the interests of both the seller and the broker.