What clause should a real estate broker include in a listing agreement to secure a commission if the property sells after the listing expires?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

The correct answer is the safety clause, which is designed to protect the broker's right to earn a commission if a property sells within a certain time frame after the listing agreement has expired. This clause is particularly important because it ensures that the broker is compensated for their efforts in marketing the property, even if the sale occurs after the agreement has officially ended, as long as the prospective buyer was introduced to the property while the listing was active.

The inclusion of a safety clause in a listing agreement allows brokers to maintain a financial interest in the transaction. It typically outlines a specific duration after the listing’s expiration during which the broker can still claim a commission if a sale occurs due to their previous marketing efforts. This protects brokers from losing potential income and encourages them to continue working diligently on behalf of their clients up until the expiration of the listing.

Understanding this clause's significance helps brokers secure their commissions and encourages sellers to consider keeping their relationship with the agent active even after the formal listing period has concluded.

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