37. 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.
In this scenario, the protection clause is essential as it stipulates that the broker maintains the right to earn a commission on any sale to buyers they introduced to the property, even after the listing has expired.
A) protection clause
This option is correct because a protection clause ensures that a broker is entitled to a commission if they provide a list of buyers who were shown the property before the listing's expiration. It protects the broker's interests in case the seller later sells to one of those buyers, thereby fulfilling the contractual obligation.
B) due diligence clause
The due diligence clause is not relevant in this context as it typically pertains to the buyer's responsibilities in investigating the property prior to purchase. This clause does not address the broker's entitlement to commission or the requirement to disclose buyers after the listing has ended.
C) procuring cause clause
While the procuring cause clause relates to the broker's ability to claim a commission based on their efforts in bringing about a sale, it does not specifically require the disclosure of buyer names after a listing has expired. Thus, it does not fulfill the need for the broker to provide a list of buyers to earn a commission.
D) MLS permission clause
The MLS permission clause is not applicable in this case, as it pertains to the authorization required for listing a property on the Multiple Listing Service. It does not concern the broker's commission rights or the obligation to disclose potential buyers after the expiration of a listing.
Conclusion
The protection clause is crucial in this situation, as it safeguards the broker's right to earn a commission from sales involving previously introduced buyers. Other options either do not address the commission issue directly or relate to other aspects of real estate transactions, making them inadequate for fulfilling the broker's requirements after the listing has expired.