Texas Real Estate Sales Agent ExamContractsMedium
A real estate agent is preparing a listing agreement for a seller. The seller expresses concern about paying a commission if they find a buyer on their own. To address this, the agent suggests an agreement where the seller retains the right to sell the property without paying a commission, but agrees to pay the agent if any other broker sells the property. This arrangement describes which type of listing?
- AExclusive Right-to-Sell Listing
- BNet Listing
- COpen Listing
- DExclusive Agency Listing
Show answer & explanationAnswer & explanation
Correct answer: D. Exclusive Agency Listing
An exclusive agency listing allows the seller to sell the property without paying a commission if they find the buyer themselves. However, if any other broker (including the listing broker) sells the property, the listing broker is entitled to the commission.
Why the other options are wrong
- A. An exclusive right-to-sell listing guarantees the listing broker a commission regardless of who sells the property, including the seller.
- B. A net listing is defined by the broker's commission being the amount above a specified net price for the seller, not by who procures the buyer.
- C. An open listing allows multiple brokers to show the property, and only the broker who procures the buyer gets paid; the seller can also sell it without paying any broker.
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: E.E.O.N. - Exclusive Right, Exclusive Agency, Open, Net define commission rules.