Agency
In Tennessee, a 'safety protection clause' (broker protection clause) in a listing agreement protects the broker by:
AGuaranteeing the property will sell
BEntitling 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 period✓ Correct
CProtecting the broker from liability for the seller's misrepresentations
DExtending the listing period automatically
Explanation
A safety clause (extender clause) protects the listing broker's commission if the seller sells the property to a buyer that the broker introduced during the listing period, even if the sale occurs after the listing expires. This prevents sellers from waiting for the listing to expire to avoid paying a commission.
Related Tennessee Agency Questions
- When a Tennessee licensee represents a client in a short sale (where the sale price is less than the mortgage balance), the licensee has a duty to:
- A listing agreement with an 'exclusive right to sell' provision means:
- A Tennessee seller who learns during a listing that the property has an underground oil tank (previously unknown) should be advised by their agent to:
- In Tennessee, a buyer's agent who represents the buyer during a transaction owes ALL of the following duties EXCEPT:
- The Knoxville Association of REALTORS® Code of Ethics is:
- Under Tennessee law, when a buyer and seller in a transaction are both represented by different licensees from the same brokerage, and the principal broker does NOT intervene, this situation is most accurately described as:
- In Tennessee, a listing broker's duty to the seller regarding the property's list price is to:
- An agent's duty of 'reasonable care and diligence' means the agent must:
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