Reserve Clause means what?

• A. Reserve Clause
• B. Open Listing
• C. Exclusive Agency
• D. Protection & Safety Clause

Answer: (A)

The Reserve Clause is a provision in a listing contract that reserves the broker’s right to a commission in certain post-listing scenarios. It protects the broker by ensuring they’re entitled to a commission if a buyer who was introduced to the property by the broker buys it, even after the listing period ends, usually within a defined protection period.

For example, if the listing has expired but a buyer the broker introduced later closes the deal, the Reserve Clause helps ensure the broker gets paid. This is different from open listings (which aren’t exclusive and don’t guarantee a commission), exclusive agency (where the owner can still sell without paying if they find the buyer themselves), or a separate protection/safety clause (which also protects against post-listing sales but is described with its own term). The Reserve Clause specifically denotes reserving the broker’s commission rights under those post-listing conditions.