How is a brokerage relationship defined once the brokerage agreement is completed or expired?

Once the brokerage agreement is completed or expired, the brokerage relationship is defined as terminated. This means that the legal and contractual relationship between the broker and the client has come to an end, and neither party is obligated to continue their duties toward the other.

In real estate practices, a brokerage agreement typically outlines the responsibilities, rights, and obligations of the parties involved. Once the terms of this agreement have been fulfilled or the time frame has elapsed, the relationship is automatically dissolved unless there’s a provision for renewal or continuation.

Understanding the nature of termination in this context is crucial, as it impacts the duties regarding client representation, commission obligations, and any continuing responsibilities like confidentiality. For instance, once the relationship is terminated, the broker usually does not owe fiduciary duties to the client, unless otherwise stipulated in the agreement or required by law. This highlights the importance of clearly understanding the lifecycle of a brokerage relationship in real estate transactions.