Contracts
A Maine seller's listing agreement expires while the property is under contract. The broker's right to a commission:
AExpires when the listing expires
BIs typically protected if the sale closes after expiration on a deal procured during the listing term✓ Correct
CDepends entirely on the buyer's approval
DMust be renegotiated before closing
Explanation
Most Maine listing agreements include a protection clause (tail period) that preserves the broker's right to a commission if the property sells to a buyer who was introduced during the listing term, even if the sale closes after expiration.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Math Concepts
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