Contracts
An Iowa listing agreement includes a safety clause (protection period clause). This clause protects the broker's commission if:
AThe property sells during the listing period
BThe property sells to a buyer the broker introduced within a specified period after the listing expires✓ Correct
CThe seller withdraws the listing early
DThe buyer's financing falls through
Explanation
A safety clause (protection period) entitles the broker to a commission if the property sells within a specified time after the listing expires to a buyer the broker introduced during the listing period.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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