Agency
What is a 'safety clause' (protection clause) in a listing agreement?
AA clause that protects the agent from lawsuits
BA clause that entitles the broker to a commission if the property sells to a buyer the broker introduced within a set period after the listing expires✓ Correct
CA clause requiring the seller to maintain homeowner's insurance
DA clause allowing the seller to cancel without penalty
Explanation
A safety clause (also called a protection clause or extender clause) protects the listing broker's earned commission by providing that if the seller sells to a buyer who was introduced by the broker during the listing period, a commission is still owed for a specified period after listing expiration.
Related California Agency Questions
- In California, when a broker represents both buyer and seller with written consent, what limitations apply to the dual agent?
- A listing agreement is a contract between:
- When does an agency relationship typically terminate?
- Which statement about open listings is correct?
- When must a listing agent provide the agency disclosure form to the seller?
- Which of the following best describes 'agency' in real estate?
- Under an exclusive agency listing, the seller retains the right to:
- The duty of 'confidentiality' in a California agency relationship requires the agent to:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →