Texas Real Estate Sales Agent ExamContractsEasy
A real estate agent is preparing a listing agreement for a seller who is concerned about paying a commission if they find the buyer themselves. The agent explains that a specific type of listing agreement would allow the seller to avoid paying a commission under those circumstances. Which type of listing agreement is the agent most likely describing?
- AOpen Listing
- BExclusive Agency Listing
- CNet Listing
- DExclusive Right-to-Sell Listing
Show answer & explanationAnswer & explanation
Correct answer: A. Open Listing
An Open Listing allows the seller to retain the right to sell the property themselves without owing a commission to any agent. The agent only gets paid if they are the procuring cause of the sale.
Why the other options are wrong
- B. An Exclusive Agency Listing allows the seller to sell the property themselves without paying a commission, but only one broker is authorized to sell the property during the listing term.
- C. A Net Listing specifies a net price for the seller, with the broker's commission being any amount over that price.
- D. An Exclusive Right-to-Sell Listing guarantees the broker a commission regardless of who sells the property.
Open Listing
A non-exclusive listing agreement where the owner retains the right to sell the property themselves without paying a commission. Multiple brokers can be involved, but only the broker who procures the buyer earns a commission.
- Non-exclusive agreement
- Seller can sell without commission
- Only procuring cause broker gets paid
Memory trick: Open doors mean anyone can sell, no commission if you do it yourself.