What happens to a listing agreement upon expiration?

Upon expiration of a listing agreement, the agent's authority to act on behalf of the principal is indeed terminated. This termination occurs because the listing agreement is a contractual arrangement that specifies a particular duration for the agent to represent the property seller or lessor. Once the agreed-upon time frame has elapsed, the contractual obligations cease, and the agent no longer has the legal authority to represent the principal in matters concerning the property.

The termination of authority protects the principal's interests by ensuring that they are not bound to continue an agreement when they no longer desire the agent's services. It also signifies that any potential new representation must be established through a new agreement rather than extending any expired authority.

The other options involve misunderstandings about agency relationships and contractual agreements. For instance, there's no automatic relisting with another agent, as a new agreement would be necessary to establish a new agency relationship with a different agent. The client is not obliged to pay additional fees simply due to the expiration of a contract, and agents typically do not gain rights to extend agreements without explicit consent from the principal. Each of these points emphasizes the significance of the contractual nature of listing agreements and the need for clear, agreed-upon terms between the parties involved.