Which of the following provisions is prohibited in a listing agreement?

A holdover clause is often included in many types of agreements but can be problematic in a listing agreement due to the potential for extended obligations on the part of the seller without satisfactory reason. This type of clause typically permits a broker to continue to earn a commission even after the listing has expired if a buyer who was introduced during the listing period completes a purchase. While holdover clauses can provide some protection for brokers, they can also lead to disputes when a seller believes they should no longer be responsible for commissions once a listing agreement has ended.

In contrast, a final sale price clause establishes the price at which the property will be sold and is critical for both buyer and seller. A closing date clause specifies when the transaction will be finalized, and both of these clauses are essential for clarity in a real estate transaction. Additionally, a commission rate clause outlines how much commission the broker will earn for the sale and is standard practice in listing agreements. Therefore, unlike the holdover clause, these provisions serve clear roles in ensuring all parties understand their financial and temporal commitments.