A buyer representation agreement expires, but the buyer purchases a property they were first shown by their former agent within the holdover period. What are the commission implications?
Correct Answer
B) The former agent is entitled to commission despite the expired agreement
Holdover clauses in buyer representation agreements protect agents by ensuring they receive commission if their former client purchases a property the agent introduced them to, even after the agreement expires. This prevents buyers from avoiding commission payments by waiting for agreement expiration.
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