Agency
In Rhode Island, what is a 'safety or extender clause' in a listing agreement and how does it protect the broker?
AA clause ensuring the broker's physical safety during showings
BA clause allowing the broker to collect a commission if the property sells after the listing expires to a buyer the broker introduced during the listing term✓ Correct
CA clause extending the listing automatically
DA clause protecting the broker from fair housing violations
Explanation
A safety/extender clause protects the broker from losing a commission if the seller waits for the listing to expire and then sells directly to a buyer who was introduced by the broker during the listing period, avoiding the commission obligation.
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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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Math Concepts
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