If a broker signs a listing agreement that states it continues until the property is sold, what is the legal status of this agreement in Hawaii?

In Hawaii, a listing agreement that continues indefinitely until the property is sold is considered illegal. This is because real estate regulations in Hawaii require listing agreements to have a specific expiration date or a defined term. An open-ended agreement without a set termination period can lead to ambiguity and potential disputes, which is why such agreements are not compliant with state law.

The key concern is that indefinite agreements can create uncertainty for both the broker and the property owner regarding their rights and responsibilities, making them subject to risk and liability. Hawaiian law is designed to protect both parties by ensuring that all real estate transactions are clear and defined. Thus, the absence of a specified expiration period renders the agreement invalid under Hawaii’s real estate statutes.