A seller's exclusive right to sell listing contains a safety clause, also called a protection or extender clause. What does that provision do?
Correct Answer
B) Entitles the broker to a commission if the seller sells, within a stated period after the listing ends, to a buyer the broker introduced
A safety clause protects a commission the broker has already earned in substance but not yet in form. It reaches only buyers the broker produced during the listing term, usually those identified on a list the broker delivers to the seller within a set number of days after expiration, and only for the stated protection period. It does not lengthen the listing itself, and it does not reach a sale to a buyer the broker had nothing to do with. Like the rest of the listing agreement, it is enforceable only in writing.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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Previous Question
Broker Sarah delivered an offer to purchase real property to Owner Martha. Owner Martha asked for 24 hours to consider the offer. Later that same day, Broker Sarah received two additional offers through other brokers. Broker Sarah believes the owner will reject all three offers. In order to comply with the law, Broker Sarah is to:
Next Question
Under California Civil Code § 2079.13(f), a licensee becomes the 'seller's agent' - the role long called the listing agent - by obtaining a listing of real property to act as an agent for compensation. With which party must that listing agreement be made?