Which action must happen for an agent to receive compensation after the agency agreement ends?

For an agent to receive compensation after the agency agreement has ended, invoking a protection period is crucial. The concept of a protection period is designed to protect the agent’s right to compensation for their work, typically specified within the original agency agreement. This period allows the agent to claim a commission on any transactions that occur within a certain timeframe after the contract has expired, provided that they were the catalyst for the transaction during the agreement.

Without this protection period, the agent would not have a legitimate claim to commission after the termination of the agreement, even if they had previously shown the property or negotiated with potential buyers during their term. This mechanism ensures that agents are compensated for their efforts, even if the sale closes after their direct involvement ends, which can often happen in real estate transactions.

Other options, such as requiring the property to sell within a specific timeframe or needing to be rehired, do not address the reality that sales can take time and may not occur immediately after an agreement concludes. Similarly, simply finding a new client does not guarantee a commission related to previous efforts. Therefore, the correct understanding of the protection period is fundamental for grasping how real estate compensation structures work in context of agency agreements.