What must happen if a brokerage agreement does not have an expiration date?

In scenarios where a brokerage agreement lacks a specific expiration date, it can lead to complications regarding its enforceability. The key concept here is that an agreement without a defined term may result in ambiguity, making it difficult to determine how long the parties are bound by its terms.

In many real estate practices and under Georgia law, without an expiration date, a brokerage agreement could be deemed void because there is no clear end to the obligations set forth in the agreement, which can render it unenforceable in a practical sense.

In contrast, the concept of an agreement being valid indefinitely poses significant issues in identifying when a broker's duties end or when a client can terminate the services, leading to possible legal disputes. The idea that it must be renewed annually or could be considered valid until canceled also implies some form of ongoing obligation or renewal process, which this type of agreement may not inherently provide without a specified expiration date. Thus, the potential void nature of such agreements aligns with the principle that clarity and defined terms are essential for valid contracts in real estate transactions.