The Broker Protection Period is a set period of time after a listing agreement expires (or is canceled) during which the listing agent is still entitled to a commission if the property sells to a buyer who was introduced to the property during the listing period.
Key Points:
Purpose: Ensures that brokers are compensated for buyers they brought to the property, even if the seller relists with another broker or waits until the listing expires to sell.
Typical Duration: Usually, 90 to 180 days after the expiration or termination of the listing agreement, depending on the Listing Agreement.
How It Works:
Example: You list your home with Broker A for 90 days.
The listing expires, but within 60 days, the property sells to a Buyer, who originally toured the home during Broker A’s listing period.
Broker A is still entitled to their commission because the Buyer was introduced during the listing period.