Extender Clause

DEFINITION of 'Extender Clause'

In real estate, a provision of an exclusive listing agreement that allows the exclusive agent to receive full commission after the exclusive listing agreement has expired if a potential buyer the agent brought to the house during the listing period came back later and decided to complete the purchase. An extender clause is also known as a protection clause or safety clause.


BREAKING DOWN 'Extender Clause'

The exclusive listing contract might be for a period of three months; the extender clause would apply for another three months (or whatever period was agreed on in the contract). The purpose of the clause is to reward the agent for doing his job and prevent the seller from abusing the agreement to avoid paying a commission.

RELATED TERMS
  1. Exclusive Listing

    A real estate sale transaction in which a specified real estate ...
  2. Contingency Clause

    A contract provision that requires a specific event or action ...
  3. Escalator Clause

    A contract provision allowing for one to pass an increase in ...
  4. Honorable Undertaking

    A reinsurance treaty clause indicating that the agreement should ...
  5. Acceleration Covenant

    A clause included in certain debt securities and swap agreements ...
  6. Listing Agreement

    A document in which a property owner (as principal) contracts ...
Related Articles
  1. Brokers

    How Real Estate Agent and Broker Fees Work

    Buying or selling a home? What you need to know about real estate agent and broker fees.
  2. Home & Auto

    Understanding Real Estate Commissions: Who Pays?

    When you set out to buy or sell a house, one factor worth considering is the real estate agent's fees.
  3. Home & Auto

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  4. Professionals

    A Day In The Life Of A Real Estate Agent

    While every day is unique for a real estate agent, there are some activities that may be a typical part of an agent's day.
  5. Home & Auto

    Finding A Good Real Estate Agent

    Don't go it alone in the real estate market. We'll show you how to find the help you need.
  6. Home & Auto

    Top 5 Signs Of A Bad Real Estate Agent

    The signs of a bad agent go beyond whether your home sells quickly.
  7. Home & Auto

    The Lowdown On Low-Fee Real Estate Agents

    Find out how the services of low-commission real estate agents comapare to full-service realtors.
  8. Home & Auto

    Why You Don't Need A Real Estate Agent

    While there are times when a real estate agent earns the commission, there are other times when you can do it yourself.
  9. Home & Auto

    6 Questions For Your Realtor

    Before you start working with a real estate agent – especially if you're the one paying the agent's commission – make sure you've made the right choice.
  10. Investing

    Corporate Bonds and the Importance of Covenants

    Any type of investor, private or institutional, should be acquainted with the significance of covenants in corporate bond agreements.
RELATED FAQS
  1. Do real estate agents get paid hourly or by salary?

    Learn about real estate commissions and how real estate agents, including listing agents, buyer's agents and real estate ... Read Answer >>
  2. How can I tell when a real estate agent might be lying to me?

    Find out what real estate agents are likely to lie about, the reasons for the lies and how to protect yourself from unscrupulous ... Read Answer >>
  3. How do real estate agents get listings?

    Learn about how real estate agents get listings in top real estate markets, as well as in smaller areas, through utilizing ... Read Answer >>
  4. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Answer >>
  5. Can real estate agents help renters find rental property?

    Real estate agents offer renters a true advantage when searching for a new home as well as negotiating power when signing ... Read Answer >>
  6. How do real estate agents market themselves?

    Find an agent by checking popular real estate circulars featuring desirable neighborhoods and call the agent to ask questions ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center