65. 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 names of prior buyers to earn a commission.
The protection clause in a listing agreement ensures that a broker can still receive a commission if a buyer, who was shown the property during the listing period, purchases the property after the listing has expired.
A) protection clause
The protection clause is specifically designed to safeguard the broker's commission rights after the expiration of a listing. By providing the names of buyers who were shown the property prior to the listing's termination, the broker fulfills the requirements of this clause, thereby maintaining their eligibility for a commission on any subsequent sale to those buyers.
B) due diligence clause
The due diligence clause typically pertains to the buyer's responsibilities to investigate the property and its suitability before the purchase. It does not relate to the broker's entitlement to a commission or the requirement to provide buyer names after the listing expires, making it irrelevant in this context.
C) procuring cause clause
The procuring cause clause relates to the broker's role in bringing about the sale of the property. While this clause can influence commission disputes, it does not specifically mandate the provision of buyer names after a listing contract has ended, thus it is not applicable in this scenario.
D) MLS permission clause
The MLS permission clause governs the rules around listing properties on Multiple Listing Services and does not pertain to the broker's commission rights or the necessity of providing prior buyer information after a listing expires. Therefore, it does not apply to the situation described.
Conclusion
The protection clause is essential for ensuring that a broker is compensated for their efforts in showing the property to buyers before the listing expired. This clause directly addresses the broker's right to commission based on prior interactions with buyers, while the other options do not fulfill this requirement, making them unsuitable in this context.