California Real Estate SalespersonContractsMedium
A homeowner signs a listing agreement stating the broker will earn a commission only if that specific broker procures a buyer; the homeowner retains the right to sell the property independently without owing any commission. What type of listing is this?
- ANet listing
- BExclusive right to sell listing
- CExclusive agency listing
- DOpen listing
Show answer & explanationAnswer & explanation
Correct answer: C. Exclusive agency listing
An exclusive agency listing appoints one broker as the sole agent, but the owner reserves the right to sell the property without paying a commission if the owner personally finds the buyer. This differs from an exclusive right to sell, where the broker earns a commission no matter who sells the property.
Why the other options are wrong
- A. Net listings pay the broker only the amount exceeding a set minimum price, unrelated to this scenario.
- B. Under exclusive right to sell, the broker earns commission even if the owner sells the property personally.
- D. Open listings allow multiple brokers to compete, not a single exclusive broker.
Exclusive Agency Listing
A listing where one broker is the sole agent entitled to a commission if any broker sells the property, but the owner retains the right to sell without commission if they find the buyer themselves.
- Only one broker holds this listing
- Owner can sell property personally and owe no commission
- Differs from exclusive right to sell, which always pays broker
- Common alternative to fully exclusive arrangements
Memory trick: Exclusive Agency = 'Owner's Escape Hatch'—owner alone can skip the commission.