The clause designed to ensure that a broker will receive a commission if negotiations with a ready, willing, and able buyer are completed after the listing has expired is called

Rationale

An extension or 'tail' clause ensures that a broker will receive a commission after a listing has expired if negotiations are completed with a ready, willing, and able buyer.

This clause protects the broker's right to earn a commission by extending the terms of the listing agreement beyond its expiration, thereby recognizing the broker's efforts in finding a prospective buyer.

A (an acceleration clause.) YOUR ANSWER

An acceleration clause is typically used in loan agreements, allowing the lender to demand full repayment of a loan if certain conditions are met. This type of clause does not pertain to real estate commissions or broker agreements, making it unrelated to the context of the question.

B (an alienation clause.) YOUR ANSWER

An alienation clause refers to a provision in a mortgage that allows the lender to require full repayment if the property is sold or transferred to another party. While it deals with property transfer, it does not address the broker's commission rights post-listing expiration, thus it is not the correct answer.

C (a coinsurance clause.) YOUR ANSWER

A coinsurance clause is relevant in insurance policies, particularly in property insurance, where it requires the insured to carry a minimum amount of insurance relative to the value of the property. This clause has no connection to real estate broker commissions, making it irrelevant to the question.

D (an extension or 'tail' clause.) CORRECT

An extension or 'tail' clause extends the broker's right to a commission for a specified period after the listing expires, provided that negotiations result in a sale. This clause is specifically designed to protect the broker's commission rights in scenarios where a buyer is found after the expiration of the listing agreement.

Conclusion

The extension or 'tail' clause is essential for brokers, as it provides them with a safeguard to earn commissions even after a listing has ended, as long as they have engaged with a viable buyer. Other clauses mentioned do not apply to the context of broker commissions, making the extension clause the only relevant choice in this scenario. This provision helps preserve the broker's interests in the competitive real estate market.

The clause designed to ensure that a broker will receive a commission if negotiations with a ready, willing, and able buyer are completed after the listing has expired is called

An extension or 'tail' clause ensures that a broker will receive a commission after a listing has expired if negotiations are completed with a ready, willing, and able buyer.

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