Alberta Real Estate Licensing Exam Practice · Question
What is the primary purpose of a 'holdover clause' in a listing agreement?
A holdover clause ensures the brokerage is compensated if a buyer they introduced during the listing period purchases the property within a specified time after
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Question: What is the primary purpose of a 'holdover clause' in a listing agreement?
Answer options:
- To allow the seller to delay moving out after closing ✅ To protect the listing brokerage's commission if the property sells shortly after the agreement expires to a buyer introduced during the listing term
- To give the buyer an extended period for due diligence
- To allow the seller to relist with another brokerage immediately
Correct answer: To protect the listing brokerage's commission if the property sells shortly after the agreement expires to a buyer introduced during the listing term
Explanation: A holdover clause ensures the brokerage is compensated if a buyer they introduced during the listing period purchases the property within a specified time after the agreement ends.
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