Does the protection period apply if the client hires another agent?
QUESTION: I had a residential listing that just expired. My client told me that he intended to hire a different firm to list his home. During the last week my listing was active, Jodi, an agent with another firm, viewed the property with her client. She told me that she expected her client to make an offer. Because that showing was the result of my marketing efforts, I wanted to protect my commission. I looked over the protection period section of the Exclusive Right to Sell Listing Agreement (Form 101), and I noticed that I had 15 days to deliver to the seller a list of any potential buyers procured by my firm. Jodi gave me the name of her client, and I included it on the list that I delivered to the seller.
If my former seller-client enters into a contract to sell the property to Jodi’s client within the protection period set forth in my listing agreement, am I entitled to a full commission?
ANSWER: It depends.
The purpose of the protection period in Form 101 is to prevent sellers from waiting until a listing agreement expires, and then selling their property without an agent in order to save paying a commission. The protection period section of Form 101 explains that if a seller merely decides to change listing agents, instead of attempting to sell the property on their own, the protection period will not apply:
Protection Period: The fee will also be deemed earned if, within _________ days after this Agreement expires, Seller either directly or indirectly agrees to sell, option, or convey the Property to any party procured by Firm while this Agreement was in effect. Within 15 days after the Expiration Date, Firm will deliver to Seller a list of the names of parties procured by Firm to which this protection period will apply. However, if Seller signs a valid listing agreement with another real estate broker before Seller agrees to sell, option, or convey the Property, then this protection period will not apply.
This means if your former client lists his property with another real estate broker, then the protection period will not apply and a commission will not be due even though the buyer was procured by your firm during the term of your listing agreement. If your seller does not hire a new firm, and you provide proper notice of buyer prospects, then the protection period will apply and a commission will be due to your firm.
The same reasoning applies in the residential buyer agency context. The Exclusive Buyer Agency Agreement (Form 201) states that if a former buyer enters into a contract within the specified time period for a property introduced to the buyer client by the firm, the fee will be earned “unless Buyer has entered into another agency agreement with another real estate agent or firm.”
It should be noted that the protection period in the residential agency forms is very different than the protection period in the commercial forms. For example, the Exclusive Right to Lease and/or Sell Listing Agreement (Form 570) states:
Later Lease Or Sale To Registered Prospect: If within ______ days after the expiration or earlier termination of this Agreement (the “Protection Period”), Client directly or indirectly leases or agrees to lease or sells or agrees to sell the Property to a party with whom Firm (or any other agent acting for or through Firm) has had substantive bilateral communication concerning the Property during the term of this Agreement, Client shall pay Firm the same commission to which Firm would have been entitled had the sale or lease been made during the term of this Agreement; provided that names of registered prospects (as defined in Section 7c.(vi) above) are delivered or postmarked to Client within fifteen (15) days after the expiration or earlier termination of this Agreement. In the event the Property is exclusively listed for lease or sale with another agency after the expiration or earlier termination of this Agreement and Client directly or indirectly leases or agrees to lease or sells or agrees to sell the Property to a registered prospect (as defined in Section 7c.(vi) above) during the Protection Period, then Client shall pay to Firm the same commission to which Firm would have been entitled.
Agents who practice both residential and commercial transactions should therefore make sure to carefully review which agency agreement is being used when evaluating whether the protection period applies or not.
Release Date: 12/4/2025
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