Texas Real Estate Sales Agent ExamContractsHard
A buyer's agent is preparing a Buyer Representation Agreement (BRA) for a client who is interested in purchasing a specific type of property that requires specialized knowledge. The agent wants to ensure that if the client purchases a property through another agent without the current agent's involvement, the current agent still receives compensation if they previously showed the property to the client. Which clause should be included?
- AExclusive Right to Purchase Clause
- BArbitration Clause
- CIndemnification Clause
- DSafety/Protection Clause
Show answer & explanationAnswer & explanation
Correct answer: D. Safety/Protection Clause
A Safety or Protection Clause (also known as an extender clause) in a Buyer Representation Agreement protects the agent's commission for a specified period after the agreement expires if the buyer purchases a property that the agent previously showed them during the term of the agreement.
Why the other options are wrong
- A. An Exclusive Right to Purchase Clause grants the agent exclusive representation, but the Safety Clause specifically addresses post-agreement compensation for properties shown.
- B. An Arbitration Clause dictates that disputes will be resolved through arbitration, not commission protection.
- C. An Indemnification Clause protects one party from liability for losses caused by another party, not commission protection.
Safety/Protection Clause (BRA)
A provision in a Buyer Representation Agreement that entitles the buyer's agent to a commission if the buyer purchases a property previously shown to them by that agent, within a specified period after the agreement expires.
- Protects the agent's commission after the agreement term.
- Applies to properties introduced to the buyer by the agent.
- Requires a specified 'protection period' after the agreement ends.
Memory trick: Safety Secures Sales After Six Months.