New Jersey Real Estate Practice Exam Practice Question
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?
Correct Answer: A
Rationale: The protection clause ensures that a broker is entitled to a commission if a buyer, previously shown the property during the listing period, purchases it after the listing has expired. This clause protects the broker's efforts in marketing the property and maintaining relationships with potential buyers.
The due diligence clause refers to the buyer's obligation to investigate a property before purchase, not commission rights. The procuring cause clause relates to establishing who is responsible for bringing about a sale, but does not specifically address expired listings. The MLS permission clause pertains to the use of listings in the Multiple Listing Service and does not involve commission rights related to expired contracts.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now