Texas Real Estate Sales Agent ExamContractsMedium
A listing agent is preparing a listing agreement with a seller. The seller insists on a clause stating that the listing agent will receive a commission only if another broker, not the listing agent, procures the buyer. What type of listing agreement is the seller proposing?
- ANet Listing
- BOpen Listing
- CExclusive Agency Listing
- DExclusive Right-to-Sell Listing
Show answer & explanationAnswer & explanation
Correct answer: C. Exclusive Agency Listing
An exclusive agency listing guarantees the broker a commission if any broker sells the property, but the seller retains the right to sell the property themselves without owing a commission to the listing broker.
Why the other options are wrong
- A. A net listing specifies a net price for the seller, with the broker receiving any amount above that price as commission, which is legal in Texas but carries specific disclosure requirements.
- B. An open listing allows multiple brokers to sell, and only the broker who procures the buyer gets paid, but the seller can also sell it themselves without paying any broker.
- D. An exclusive right-to-sell listing guarantees the listing broker a commission regardless of who sells the property.
Exclusive Agency Listing
A listing agreement where the seller grants one broker the exclusive right to sell the property, but the seller reserves the right to sell the property themselves without paying a commission to the broker.
- Only one broker is authorized to act as the exclusive agent.
- Broker earns commission if any broker sells the property.
- Seller retains right to sell and avoid commission if they find the buyer.
Memory trick: L.I.S.T. - Listing agreements include Exclusive Right, Exclusive Agency, Open, and Net.