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Simple guide on how to Protect Real Estate Sales Contract

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How to Protect Real Estate Sales Contract

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Every autumn, first-year law students learn that land is unique and treated distinctly in the legal system, with real estate sales having two phases: the contract phase and the closing phase. This presentation focuses on the contract phase, outlining the necessary requirements for contracts in real estate sales. It discusses the seller's fundamental responsibilities in the transaction and remedies for breaches of a land sale contract. For a land sale contract to be enforceable, it must comply with the statute of frauds, which requires that the contract be in writing and signed by the parties, separate from the deed used for the actual transfer of land.

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What is the meaning of protective clause?

: the clause in the Fourteenth Amendment to the U.S. Constitution that prohibits any state from denying to any person within its jurisdiction the equal protection of the laws.

What is the protection period in Florida real estate?

The exclusive listing agreement provides that the broker is entitled to the commission if the property was sold or leased within twelve months after termination of the agreement to any buyer to whom the property was submitted for sale during the continuance of the agreement. This is the brokers protection period.

What is protection period?

Protection Period means the period commencing on the date that a Change in Control occurs, and ending on the last day of the twelfth (12th) calendar month following the calendar month during which such Change in Control occurred.

Whats the purpose of the broker protection clause in the listing contract?

The broker protection clause clarifies that the seller still has to pay the broker a commission should the buyer try to circumvent the broker and approach the seller directly. As such, it protects the broker from bad dealings between sellers and buyers.

What does the broker protection clause in a real estate listing contract provide?

A broker protection clause, also referred to as a safety clause or extender clause, is a contingency found in listing agent contracts. This clause says that in certain situations, the seller will pay the listing agent commission fees even if the home sells after their listing has expired.

What does protected period mean in real estate?

Protection clauses include an expiration date thats typically 30 to 45 days after the listing agreement expires. Some exclusions may apply, which is why its so important to read the fine print and ask questions before signing the contract.

What are a buyers remedies when a seller bdocHubes a sales contract?

Essentially, there are three options available to the non-defaulting buyer: Allow the contract to collapse and, thereafter, demand the return of the deposit; Sue for specific performance of the contract; or. Accept the repudiation/bdocHub of the contract and sue for damages.

What is the protection clause in a contract?

A safety protection clause entitles a real estate broker to a commission if a sale occurs after the listing agreement expires. This protects the broker from collusion between sellers and buyers to save the seller the cost of real estate commission.

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