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Laws Of Agency Fiduciary DutiesTermination_and_liabilityMEDIUM

A California listing agent holds an exclusive right-to-sell listing under the C.A.R. Residential Listing Agreement (RLA) with a 90-day safety clause. The listing expires without a sale. Sixty days after expiration, a buyer who was shown the property by the listing agent during the active listing period purchases the property — and the seller did not re-list with any other broker. Does the original listing broker have a valid commission claim?

Correct Answer

C) Yes, because the sale occurred within the 90-day protection period to a buyer the broker had previously introduced to the property

The C.A.R. RLA safety clause (broker protection clause) preserves the listing broker's right to a commission for sales that occur within the specified protection period after listing expiration, provided the buyer was introduced to or shown the property by the broker during the active listing period. Because the sale occurred within 60 days of expiration (inside the 90-day window), the buyer was shown the property by the broker during the listing, and the seller did not re-list with another broker — which would trigger the override exception — the original broker has a valid contractual commission claim.

Answer Options
A
No, because the listing agreement expired before the sale occurred and the broker's contractual rights terminated with it
B
No, because the safety clause only applies if the broker submitted a written offer from that buyer before the listing expired
C
Yes, because the sale occurred within the 90-day protection period to a buyer the broker had previously introduced to the property
D
Yes, but only if the broker can prove the buyer's identity was registered with the seller in writing before the listing expired

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Related Topics & Key Terms

Key Terms:

safety_clauseprotection_periodcommission_claimlisting_expiration

Related Concepts

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

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