What is one of the main protections for a broker in a listing agreement?

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Prepare for the Real Estate Transactions Exam. Study with comprehensive questions, detailed hints, and explanations to enhance your knowledge and pass the exam with ease. Get exam-ready today!

In a listing agreement, one of the main protections for a broker is indemnification for undisclosed problems. This provision ensures that if any issues arise after the transaction related to problems that were not disclosed by the seller, the broker is protected from liability. Essentially, it holds the seller accountable for any undisclosed defects or issues that could affect the value or legal standing of the property.

Indemnification provides the broker with a safeguard, allowing them to carry out their duties without fear of being held responsible for the seller's failure to disclose relevant information. This aspect is crucial because it allows brokers to act on behalf of their clients without being exposed to potential legal claims arising from the seller's omissions.

The other choices, while they might sound appealing in theory, do not provide the same level of protection for brokers in a listing agreement. A guarantee of sale is not a typical feature of a listing agreement, as it is not realistic to assure a sale without factors like market conditions being assessed. Exclusive rights for all sales might be a component of certain types of agreements but does not inherently protect brokers from issues. Fixed commission rates vary based on market agreement and do not inherently provide protection in a legal context. Indemnification, therefore, stands out as a

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