What is the protection period in real estate?
What is the protection period in real estate?
The protection period in a listing agreement is specifically there to protect the real estate agent. For a certain amount of days after the contract expires, if any of the potential buyers that the seller’s agent brought in actually buy the home, then you will still owe them the commission.
How long is the safety protection clause?
The agreement also contains a ten- year safety clause.
What is the condition required for an agent to be the procuring cause?
A real estate broker is referred to as the procuring cause of a sale if their outreach and actions resulted in the sale or lease of a property. The procuring cause determines who receives commission once the sale of a home is complete, and the payment goes to the broker whose actions led the client to buy.
What is the threshold rule in real estate?
Therefore the privilege of automatic procuring cause is not granted to the firm and its agent who drafts the offer or the firm and its agent who first shows the property, commonly called the threshold rule.
What does procuring cause mean in real estate?
The procuring cause in real estate consists of the actions made by a real estate agent that caused the buyer to purchase the home. If you chose to work with multiple agents or switched agents partway through a sale, there may be a dispute regarding procuring cause.
What is a broker protection clause in real estate?
To protect brokers in this instance, most listing agreements have what is known as a “broker protection clause,” also known as an “extension clause” or “tail provision.” The broker protection clause provides that if the owner contracts to sell the property with a buyer who was procured by the broker within a specified …
What does procuring cause of the sale mean?
What Is The Procuring Cause? A procuring cause in real estate transactions refers to the real estate agent or broker whose actions resulted in the sale. As a result of their actions, that real estate professional is compensated with a commission from the property sale.
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.
What does procuring cause mean?
How does the procuring cause work in real estate?
A real estate broker is referred to as the procuring cause of a sale if their outreach and actions resulted in the sale or lease of a property. The broker who is the procuring cause of the transaction is entitled to a commission. In some cases, procuring cause disputes can arise between brokers or brokers and their clients.
Can a broker be the procuring cause of a sale?
No! The procuring cause doctrine is a proposition that states, “ [i]n the absence of a special contract, a broker is entitled to a commission when that person is the procuring cause of a sale.” Esslinger-Wooten-Maxwell, Inc. v. Lones Family Limited Partnership, 45 Fla. L. Weekly D224a (Fla. 3d DCA 2020) (citation omitted).
Is the broker entitled to a commission under the procuring cause doctrine?
When the original broker learned of this, it sued to commercial owner claiming it is entitled to its commission under the procuring cause doctrine, even though the sale was consummated years after the expiration of the listing agreement. Is the broker entitled to a commission? No!
What is the broker protection clause in real estate?
The broker protection clause provides that if the owner contracts to sell the property with a buyer who was procured by the broker within a specified period of time after the expiration of the listing (such as 90 days), then the full commission is owed.
