Contracts
Which clause in a listing agreement allows a broker to earn a commission if the property is sold to a buyer introduced during the listing period, even after the listing expires?
AAutomatic renewal clause
BSafety (extender) clause✓ Correct
CExclusive right-to-sell clause
DOverride clause
Explanation
A safety clause (also called an extender clause or override clause) protects the broker's commission for a specified period after the listing expires if the property is sold to a buyer the broker introduced during the listing term.
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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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