What does a broker protection clause in a listing agreement ensure?

A broker protection clause in a listing agreement is designed to ensure that the broker receives a commission for a sale that occurs after the listing agreement has ended, provided that the buyer was introduced to the property during the term of the agreement. This clause protects the broker's interest by ensuring that they are compensated for their efforts in marketing the property and generating potential buyers, even if the sale is finalized after the formal agreement has lapsed.

This is particularly important in real estate transactions where the process can continue beyond the listing period. Should a buyer, who was made aware of the property through the broker's marketing efforts, purchase the property shortly after the listing agreement expires, the broker would still be entitled to a commission. The presence of this clause gives brokers a level of security and assurance that their work will be rewarded, promoting fairness in the business relationship between the broker and the property owner.