National Real Estate Exam (PSI)ContractsEasy
A seller lists a property with Broker A under an exclusive-agency listing agreement. Before the listing expires, the seller finds a buyer entirely on their own, without help from any broker. What commission, if any, is owed to Broker A?
- ANo commission, since the seller procured the buyer
- BHalf commission, split between seller and broker
- CThe listing automatically converts to an open listing
- DFull commission, since Broker A had the listing
Show answer & explanationAnswer & explanation
Correct answer: A. No commission, since the seller procured the buyer
In an exclusive-agency listing, the seller retains the right to sell the property themselves without owing a commission. Commission is only owed if a broker (Broker A or another broker) procures the buyer.
Why the other options are wrong
- B. There is no rule for splitting commission in this scenario.
- C. The listing type does not automatically change.
- D. This would apply to an exclusive-right-to-sell listing, not exclusive agency.
Exclusive-Agency Listing
A listing agreement where one broker is the sole agent, but the seller reserves the right to sell the property personally without owing a commission.
- Differs from exclusive-right-to-sell (commission owed no matter who sells)
- Seller can sell property themselves commission-free
- Only one broker represents the seller
- Common alternative to open or exclusive-right-to-sell listings
Memory trick: 'Agency lets the seller find their own family buyer for free'