What obligation might a seller have to a broker after the listing expires if a buyer returns?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

When a seller enters into a listing agreement with a broker, part of that agreement typically includes a clause regarding what happens if a sale occurs after the listing has expired. If a potential buyer, who was introduced to the property by the broker during the listing period, returns to purchase the property shortly after the listing has expired, the seller may still owe a commission to the broker. This is often referred to as a "protective period" or "extension clause," which is designed to ensure that brokers are compensated for their efforts in bringing potential buyers to the property, even if the transaction closes after the listing has officially ended.

This obligation recognizes the broker's role in generating interest in the property and helps prevent sellers from bypassing the broker to avoid paying a commission after fostering a relationship with the buyer during the listing period. Thus, the seller has a financial obligation to the broker for a specified timeframe after the expiration, provided that the buyer was introduced to the property during the term of the listing.

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