A seller waits until a listing expires and then immediately sells to a buyer the broker introduced during the listing period. Which clause may preserve the broker's claim to compensation?
Correct Answer
C) Protection clause
Protection clause is correct because the facts match a listing provision that may preserve the broker's right to compensation if the property sells soon after expiration to a prospect introduced during the listing term. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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A listing agreement creates an agency relationship between:
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