What is the purpose of the Protection Period Clause (Safety Clause) in real estate?

The purpose of the Protection Period Clause, commonly referred to as the Safety Clause, in real estate transactions is to ensure that the listing agent is compensated for their efforts even if the listing agreement expires. This clause applies when a buyer who has previously been shown the property by the agent later decides to purchase that property after the listing has officially ended. In such cases, the agent must demonstrate that they were the procuring cause of the sale—meaning they played a significant role in bringing the buyer and seller together.

This clause is beneficial for real estate agents as it protects their time and resources invested in marketing and showing the property. It incentivizes agents to continue working diligently throughout the listing period, knowing they will still be compensated if a buyer ultimately makes a purchase within a specific timeframe after the listing agreement concludes.

While other options touch on relevant aspects of real estate transactions, they do not accurately reflect the primary function of the Protection Period Clause.