Relates to the definition and term of real estate listing agreements; provides that no real estate broker shall be a party to a listing agreement if such agreement is for a period longer than two years; provides that a listing agreement shall not be enforceable if the agreement is for a period longer than two years.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8120
SPONSOR: Lee 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 incentive 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 moti-
vated to perform, and homeowners 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 modern 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.
STATE OF NEW YORK
________________________________________________________________________
8120
2025-2026 Regular Sessions
IN ASSEMBLY
May 1, 2025
___________
Introduced by M. of A. LEE -- read once and referred to the Committee on
Judiciary
AN ACT to amend the real property law, in relation to the definition and
term of real estate listing agreements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property law is amended by adding a new section
2 442-m to read as follows:
3 § 442-m. Listing agreements. 1. For the purposes of this section,
4 "listing agreement" means a contract between an owner or owners of resi-
5 dential real property and an agent, by which the agent has been author-
6 ized to sell or lease the residential real property or to find or obtain
7 a buyer or lessee therefor.
8 2. No real estate broker shall be a party to a listing agreement if
9 such agreement is for a period longer than two years.
10 3. A listing agreement shall not be enforceable if the agreement is
11 for a period longer than two years.
12 4. Nothing shall prohibit the renewal of a listing agreement upon or
13 prior to the fixed termination date set forth in such agreement,
14 provided, however, no real estate broker shall be a party to an exclu-
15 sive listing agreement which shall contain an automatic continuation of
16 the period of such listing beyond the fixed termination date set forth
17 in such agreement.
18 § 2. This act shall take effect one year after it shall have become a
19 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11570-01-5
