A Listing Agreement has expired, and the seller decides not to re-list the property immediately. Weeks later, the original listing salesperson discovers that the seller has privately sold the property to a buyer who was shown the property during the exclusive listing period. What potential entitlement does the brokerage have against the seller?

Question: A Listing Agreement has expired, and the seller decides not to re-list the property immediately. Weeks later, the original listing salesperson discovers that the seller has privately sold the property to a buyer who was shown the property during the exclusive listing period. What potential entitlement does the brokerage have against the seller?

Answer options:

• The brokerage has no entitlement to commission as the agreement has expired. ✅ The brokerage may be entitled to commission if the Listing Agreement included a 'holdover' clause and the sale occurred within that protected period to a buyer introduced by the brokerage.
• The brokerage is only entitled to reimbursement for advertising expenses incurred.
• The brokerage can demand specific performance from the seller to enforce the original terms of the listing.

Correct answer: The brokerage may be entitled to commission if the Listing Agreement included a 'holdover' clause and the sale occurred within that protected period to a buyer introduced by the brokerage.

Explanation: Many Listing Agreements contain a 'holdover' or 'protected period' clause, which entitles the brokerage to commission if the property is sold within a specified timeframe after the agreement expires to a buyer who was introduced to the property by the brokerage during the listing period. This clause is standard in most exclusive listing agreements.