Final answer:
Upon analyzing the renewal terms within the context of a listing agreement, options a, b, and c do not appear to contain inherently illegal renewal terms, while option d may be legal depending on specific state laws and contract stipulations. Consulting state regulations and standard practices in real estate is crucial for determining the legality of such terms.
Step-by-step explanation:
In the context of a listing agreement, certain renewal terms may be considered illegal due to their potentially unfair or restrictive nature. When reviewing options a through d mentioned in the student's question, we can analyze each to determine legality based on general principles of contract law and standard real estate practices.
Option (a) outlines a renewal term that automatically renews the contract for a three-month period unless the principal, or client, submits a specific form to dissolve the contract within a specified time frame. This could be considered legal if the time frame for opting out is reasonable and if such automatic renewal clauses are allowed by state law.
Option (b) regards the payment of a commission to the agent if the seller finds a buyer independently. This is often a clause included in exclusive right to sell agreements, but it is generally a legal and standard practice in listing agreements that an agent is not owed a commission if the seller finds the buyer themselves unless otherwise stipulated in the specifics of the contract.
Option (c) states the agreement will be in force for 18 months, which is just a term of the contract and does not in itself present any illegality. This is a clear and straightforward term for the length of the contract.
Option (d) allows the seller to withdraw the property from the market and remove it from the Multiple Listing Service (MLS) at any time. Depending on the terms of the agreement, this might be perfectly legal. However, if there are penalties or other obligations stipulated in the contract for early withdrawal, those would need to be adhered to, and the clause should be drafted to ensure it is not creating an unconscionable contract.
It is essential to consult state laws and regulations, as real estate contract terms can vary significantly by jurisdiction and must conform to local real estate laws and industry standards.