Contracts

A Massachusetts listing agreement that contains a provision allowing the broker to receive a commission even after the listing expires if the property is sold to someone the broker introduced during the listing—this is called a:

AHoldover clause (protection period)✓ Correct
BAutomatic renewal clause
CExclusive agency clause
DSafety period exemption

Explanation

A holdover clause (protection period or extender clause) in a listing agreement entitles the broker to a commission if the property sells within a specified period after the listing expires to a buyer the broker introduced during the listing term.

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