Texas Real Estate Sales Agent ExamContractsMedium
A real estate agent is preparing a listing agreement for a commercial property. The seller wants to ensure they retain the right to sell the property themselves without owing a commission to the agent, but still wants the agent to market the property to other potential buyers. Which type of listing agreement best fits the seller's wishes?
- 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 retain the right to sell the property themselves without paying a commission to the agent. However, if the agent or another broker brings a buyer, the agent is entitled to a commission. This balances the seller's desire for self-sale with professional marketing.
Why the other options are wrong
- A. An Exclusive Right-to-Sell Listing guarantees the agent a commission regardless of who sells the property, which doesn't meet the seller's desire to sell themselves without commission.
- B. A Net Listing specifies a net price for the seller, with the agent's commission being any amount over that price, which is generally disfavored and illegal in many states, including Texas, due to potential conflicts of interest.
- C. An Open Listing allows multiple agents and the seller to market the property, but only the agent who procures the buyer gets paid, which is less exclusive than the seller wants for the agent's marketing.
Exclusive Agency Listing (Texas)
A listing agreement where one broker is authorized to act as the exclusive agent, but the seller retains the right to sell the property themselves without paying a commission.
- Only one broker is designated as the exclusive agent.
- Seller reserves the right to sell the property themselves and avoid commission.
- If the broker or another broker procures the buyer, the listing broker earns the commission.
Memory trick: Every Agent Only Knows Net Listings.