Contracts

The 'automatic extension' provision in a listing agreement is generally:

AEncouraged by GREC as standard practice
BDiscouraged or prohibited by GREC, as it prevents sellers from re-evaluating their listing relationship✓ Correct
CRequired by Georgia law
DStandard in all GAR forms

Explanation

GREC discourages automatic extension clauses in listing agreements because they can trap sellers in agreements they would otherwise terminate. Georgia licensing rules generally prohibit automatic renewal provisions in listing agreements.

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