Tennessee Real Estate Exam Practice Question
An expired listing broker gives the seller the names of prior prospective buyers. What clause obligates the seller to pay a commission if one of those buyers later purchases the property?
Correct Answer: A
Rationale: The protection clause ensures that a broker is compensated for their efforts in generating interest in a property, even after the listing has expired. This clause specifically protects the broker's right to a commission if a buyer they previously introduced later purchases the property.
The due-diligence clause pertains to the buyer's responsibilities in investigating a property, not commission rights. The procuring cause clause relates to determining which broker is entitled to a commission based on who initiated the transaction, but does not specifically address expired listings. Lastly, the MLS permission clause involves rules about listing properties in the MLS and does not pertain to commission obligations.
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