Can a licensee enforce an override clause in a listing agreement?

A licensee can indeed enforce an override clause in a listing agreement under certain circumstances. The correct response highlights that enforcement is only possible if the licensee has provided a protective list to the seller within 72 hours following the expiration of the listing agreement.

This condition is critical because the protective list serves as documentation of potential buyers who showed interest during the listing period. By submitting this list within the specified timeframe, the licensee is safeguarding their right to collect a commission from subsequent transactions involving those interested parties, even after the agreement has ended.

The rationale behind this requirement aims to protect both the seller and the licensee by ensuring there is a clear record of interested parties, which promotes fair practice in the real estate market. In this context, timing and documentation play essential roles in legitimizing the enforcement of the override clause.