California Real Estate SalespersonLaws of Agency and Fiduciary DutiesEasy
A seller enters into an exclusive agency listing with Broker Jones. During the listing period, the seller personally finds a buyer through her own efforts, with no involvement from Jones or his office, and completes the sale directly with that buyer. Under the terms of an exclusive agency listing, what commission is owed to Jones?
- AFull commission, because Jones held an exclusive listing
- BHalf commission, split between the seller and Jones
- CNo commission, because the seller herself procured the buyer
- DA commission covering only Jones's advertising costs
Show answer & explanationAnswer & explanation
Correct answer: C. No commission, because the seller herself procured the buyer
An exclusive agency listing reserves the seller's right to sell the property herself without owing a commission. This differs from an exclusive right-to-sell listing, which would entitle the broker to a commission regardless of who found the buyer.
Why the other options are wrong
- A. Full commission only applies under an exclusive right-to-sell listing.
- B. There is no rule splitting commission in this scenario.
- D. Advertising cost reimbursement is not the standard remedy here.
Exclusive Agency Listing
A listing where the broker is the only agent authorized to sell the property, but the seller retains the right to sell it herself without owing a commission.
- Differs from exclusive right-to-sell listings.
- Seller-procured sales owe no commission.
- Broker still earns commission if broker or any other agent procures a buyer.
Memory trick: 'Exclusive Agency = Except the owner' can still sell free.