88. A broker whose listing has expired has given the seller the names of buyers who were shown the property prior to the termination of the listing. What listing contract clause requires this action if the brokerage is to earn a commission on a later sale to one of the named buyers?
Answer: A
The protection clause requires the broker to provide the names of buyers to earn a commission on a later sale.
The protection clause in a listing contract ensures that a broker can claim a commission if a buyer, who was previously shown the property, purchases it after the listing has expired. This clause protects the broker's interests by recognizing their efforts in introducing potential buyers to the property.
A) protection clause
This option is correct because the protection clause specifically addresses the situation where a broker needs to provide the names of buyers shown the property before the listing's termination. It allows the broker to be compensated for their work in generating interest in the property, even after the listing has ended.
B) due diligence clause
This option is incorrect as the due diligence clause typically pertains to the responsibilities and investigations a buyer must undertake before completing a purchase. It does not relate to the broker's obligation to disclose buyers to secure a commission after the listing expires.
C) procuring cause clause
This option is also incorrect. The procuring cause clause involves determining which broker was responsible for bringing about the sale. While it relates to commission, it does not specifically require the broker to provide names of buyers after the listing has expired, which is the focus of the question.
D) MLS permission clause
This option is incorrect because the MLS permission clause pertains to the rights and permissions related to listing a property on the Multiple Listing Service. It does not address the broker's obligations regarding potential buyers after the listing period has ended.
Conclusion
The protection clause is essential for brokers as it secures their right to a commission from sales involving buyers they introduced prior to the expiration of the listing. Other options, while related to different aspects of real estate transactions, do not fulfill the requirement posed by the question, demonstrating why the protection clause is the definitive answer.