New York Real Estate Salesperson ExaminationContractsMedium
A real estate agent is preparing a listing agreement for a seller. The seller insists on a clause that allows them to sell the property themselves without owing a commission to the agent, even if the agent is actively marketing the property. What type of listing agreement is the seller requesting?
- 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 allows a seller to hire one broker as their exclusive agent, but the seller retains the right to sell the property themselves without paying a commission. If any other broker or the exclusive broker sells it, the commission is due.
Why the other options are wrong
- A. A net listing is where the seller sets a net amount they want to receive, and the broker keeps any amount above that; it's illegal in many places, including NY.
- B. An open listing allows multiple brokers to market the property, and only the selling broker gets a commission; the seller can also sell independently.
- D. An exclusive right-to-sell listing guarantees the broker a commission regardless of who sells the property.
Exclusive Agency Listing
A listing agreement where one broker is authorized to act as the exclusive agent, but the seller reserves the right to sell the property themselves without paying a commission.
- Broker gets commission if they or another broker sell.
- Seller retains right to sell and avoid commission.
- Less common than exclusive right-to-sell.
Memory trick: Exclusive Agency: Agent gets it, UNLESS the Seller handles it.