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 potential buyers after a listing expires for commission eligibility.
The protection clause stipulates that a broker can earn a commission on the sale of a property to buyers they previously showed the property to, even after the listing has expired, provided these buyers are named to the seller.
A) protection clause
The protection clause is specifically designed to ensure that brokers can claim a commission if they have previously introduced potential buyers to the property before the listing expired. This clause protects the broker's interests by allowing them to continue to receive commission for sales to those buyers, ensuring they are compensated for their marketing efforts.
B) due diligence clause
The due diligence clause typically pertains to the obligations of the buyer in investigating the property before completing a sale. This clause does not relate to the broker's commission rights or requirements for naming buyers after a listing has expired, making it irrelevant in this context.
C) procuring cause clause
The procuring cause clause determines which broker is entitled to a commission based on who initiated the process leading to the sale. However, it does not specifically address the situation where a listing expires and potential buyers must be named to maintain commission eligibility, thus making it insufficient for this scenario.
D) MLS permission clause
The MLS permission clause involves the rules and regulations concerning the listing of properties in a Multiple Listing Service. This clause does not pertain to the broker’s rights to a commission after a listing has expired, and therefore does not apply to the situation described in the question.
Conclusion
The protection clause is crucial in ensuring that a broker can still earn a commission from buyers previously shown the property after the listing expires. Other options either relate to different aspects of real estate transactions or do not address the requirement for naming buyers to secure commission rights, confirming that the protection clause is the definitive answer in this context.