What does the Broker Protection Clause ensure?

The Broker Protection Clause is designed to preserve the broker's commission for a specific period after the listing agreement ends. This clause typically comes into play if a buyer is introduced to the property during the listing period but does not complete the purchase until after the listing has expired. By including this clause in a listing agreement, brokers are shielded from losing their commission if a sale occurs shortly after their relationship with the seller formally concludes, provided that they were instrumental in facilitating the sale.

This clause is particularly important in real estate transactions, as it helps ensure that brokers are compensated for their work in marketing the property and for connecting potential buyers with sellers. It aligns the interests of both parties, ensuring that sellers remain accountable for potential buyers they may have encountered during the broker's active period.