In AAR listing agreements, what does the 'holdover clause' or 'protection period' specifically protect?
Correct Answer
B) The agent's right to commission on sales to prospects introduced during the listing period
The holdover clause protects the listing agent's right to commission if the property sells to prospects who were introduced to the property during the active listing period, typically for 90-180 days after listing expiration. Early cancellation rights (A) are separate contract provisions. Post-closing inspection rights (C) are unrelated to holdover clauses. Automatic listing extensions (D) are not the purpose of protection periods.
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Related Topics & Key Terms
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Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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Previous Question
An agent uses an AAR Buyer Representation Agreement with a 6-month term. After 3 months, the buyer wants to terminate the agreement to work with another agent. The original agent has shown 15 properties and spent significant time with the buyer. What protection does the AAR form typically provide the original agent?
Next Question
In a Sierra Vista transaction review, a test-prep tutor presents an AAR contract deadline as though it were a statewide statute that applies in every Arizona transaction regardless of form. Which statement should the broker communicate?