What is the purpose of a safety clause in a listing agreement?

The purpose of a safety clause in a listing agreement is to ensure that the broker will be compensated under specific conditions even after the listing agreement has expired. This clause is particularly beneficial for brokers as it provides a measure of protection for their efforts in marketing the property. If a buyer who was introduced to the property by the broker purchases it after the agreement has concluded, the safety clause allows the broker to claim a commission.

This provision acknowledges that the time and resources the broker invested in marketing the property can lead to a sale even after the official relationship has ended. Therefore, the safety clause serves to safeguard the broker's commission rights for a period following the termination of the agreement if a transaction occurs with a previously interested party.