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Grandfather clause

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What is The Grandfather Clause?

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Grandfather Clause

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237 grandfather clause Free Real Estate License Exam Words Questions AgentExamPass.com

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What is a grandfather clause?

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Training Video #63 - Grandfather Clause

A grandfather clause is a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases. Those exempt from the new rule are said to have grandfather rights or acquired rights, or to have been grandfathered in. Frequently, the exemption is limited; it may extend for a set time, or it may be lost under certain circumstances. For example, a "grandfathered power plant" might be exempt from new, more restrictive pollution laws, but the exception may be revoked and the new rules would apply if the plant were expanded. Often, such a provision is used as a compromise or out of practicality, to allow new rules to be enacted without upsetting a well-established logistical or political situation. This extends the idea of a rule not being retroactively applied. Another common example of a grandfather clause is a customer of a utility or telecommunications service who pays a certain rate and maintains that rate even if other subscribers and new subscribers face higher or increasing rates. If it is an unlimited clause it continues indefinitely and is only cancelled if the subscriber discontinues the services, fails to pay their bill(s) or makes certain changes to their contract.