What happens if a brokerage engagement is not in writing?

In the context of brokerage engagements, when an agreement isn't documented in writing, it can lead to a situation where the engagement does not hold legal standing. In real estate, many states, including Georgia, adhere to statutes requiring certain agreements, such as listing agreements or property management agreements, to be in writing to be enforceable. Without a written agreement, there may be ambiguity about the terms of engagement, the responsibilities of the parties involved, or the obligations of the brokerage. This lack of clarity can lead to disputes and makes it difficult to enforce any verbal agreements made, as they may not be sufficiently documented to prove their validity in a court of law or during any formal negotiation or dispute resolution process.

Options suggesting automatic renewal or implications regarding commissions do not align with the legal principles governing real estate agreements. Hence, the absence of a written brokerage engagement compromises its enforceability and legal recognition, which is why the correct answer highlights the lack of legal standing if an agreement isn't documented properly.