Uncover the crucial aspects of the protection period in listings.
Understanding the nuances of a real estate listing agreement is crucial, especially when it comes to the protection period. Lately, there’s been some confusion in the market about this aspect, so let’s clarify what a protection period means in a listing agreement.
A protection period in a listing agreement, found under paragraph five, section E, essentially covers a time frame post-listing. It’s a period where you, as the agent, are protected from losing commission if a buyer who visited the property during the listing directly engages in a deal with the seller after the listing ends. This period typically ranges from 30 to 180 days and is negotiable.
The activation of a protection period requires action. Within ten days after the listing ends, the broker can send the seller a written notice specifying the names of individuals (not agents) who were shown or expressed interest in the property during the listing. This specificity is key to protection.
“Misinformation can lead to misconceptions and conflicts.”
One crucial aspect to understand is paragraph three of the listing agreement. It states that if the listing is terminated or if the property is exclusively listed with another broker, especially a member of the Texas Realtors, the protection period becomes void. This means you cannot expect to receive a commission if the property is re-listed with another broker.
The protection period is designed to prevent scenarios where sellers and buyers circumvent their respective agents to cut a deal directly. It’s not a tool to facilitate such actions but rather to protect the interests and efforts of the agents involved in the initial listing.
We encourage agents to revisit their listing agreements and thoroughly understand the protection period clause. Misinformation can lead to misconceptions and conflicts. Understanding this clause is vital for a transparent and fair real estate transaction.
We hope this explanation clears up any confusion about the protection period. If you have further questions or need assistance with your real estate needs, feel free to call us or send an email.
