What does protect period mean in real estate?
Key Takeaways. A safety protection clause in a listing agreement entitles the real estate broker or agent to a commission after the listing expires or is canceled. This applies when the final buyer was brought to the deal by the broker.
What is a broker protection period?
Typically in a representation contract there may be a protection period. That means you cannot wait until the day the contract expires and then try to work a deal around the agent. If you have this and do that you could be liable for the commission.
How long is the safety protection clause?
The agreement also contains a ten- year safety clause.
What does broker protected mean in real estate?
A broker protection clause, also referred to as a safety clause or extender clause, is a contingency found in listing agent contracts. This clause says that in certain situations, the seller will pay the listing agent commission fees even if the home sells after their listing has expired.
What is a protective clause?
In any contract, the parties to the contract have obligations to perform. Accordingly, “protective” clauses are contained in contracts, such as in charterparties, to exempt one or both parties from becoming liable or which reduce liability. … Protective clauses could operate to affect both parties.
What is a carryover clause in a listing agreement?
A carry over or protection clause in a listing contract that says the listing broker is entitled to comission for a time period after expeiration of the listing ter if the property is transferred to a prospect that the broker introduced to the property during the lisitng term; override clasue.
What is an equitable title in real estate?
When a buyer of real property executes a purchase and sale agreement with a seller, the buyer acquires equitable title to the property. This means that they have the right to eventually obtain full legal ownership of the property, as long as they pay the purchase price.
What is a tail clause in real estate?
A “tail period” is a standard clause in a listing agreement that requires the broker to register certain parties or transactions and a period of time during which the broker shall be protected and recognized as the broker for the transaction, entitled to be paid its commission pursuant to the listing agreement.
Who determines the length of a safety clause in a listing agreement?
This “protection clause” provision is negotiated between the seller and the real estate broker at the time the listing agreement is signed. The provision does not automatically apply and can be deleted from the agreement by the protection period space left blank or by writing in “0” for the number of days.
Who does a safety clause protect?
A clause in a listing protecting the broker from having buyer and seller wait until the listing expires to make a deal, thereby avoiding the payment of commission.
What is a subordinate clause in real estate?
When you take out a mortgage loan, the lender will likely include a subordination clause. Within this clause, the lender essentially states that their lien will take precedence over any other liens placed on the house. A subordination clause serves to protect the lender in case you default.
Are agents protected?
Agents can make mistakes, too, but they have professional errors and omissions insurance to protect themselves and give the buyer recourse, so the buyer may not need to pursue the seller for damages.
What is an alienation clause in a mortgage?
An alienation clause, also known as a due-on-sale clause, is a real estate agreement that requires a borrower to pay the remainder of their mortgage loan off immediately during the sale or transfer of a property title and before a new buyer can take ownership.
What Is time of the essence clause?
“Time is of the essence” is a legal phrase used to specify the time period in which one party must complete its contractual obligations to the other party. Failure to meet deadlines set in a contract’s “time is of the essence” clause results in a breach of contract.