California Real Estate Broker ExaminationContractsMedium
A real estate agent is preparing an exclusive right-to-sell listing agreement. What is a key characteristic of this type of listing from the perspective of the listing broker's commission?
- AThe broker earns a commission regardless of who sells the property, even if the seller finds the buyer.
- BThe broker earns a commission only if they are the procuring cause of the sale.
- CThe broker earns a commission only if an authorized agent of the broker sells the property.
- DThe broker shares the commission with any other broker who sells the property.
Show answer & explanationAnswer & explanation
Correct answer: A. The broker earns a commission regardless of who sells the property, even if the seller finds the buyer.
An exclusive right-to-sell listing agreement guarantees the listing broker a commission if the property sells during the listing period, regardless of who procures the buyer (the listing broker, another broker, or even the seller themselves). This provides the most protection for the broker.
Why the other options are wrong
- B. This describes an open listing or an exclusive agency listing (if the seller sells it themselves).
- C. This is incorrect. The 'exclusive right-to-sell' covers sales by anyone, including the seller.
- D. While commissions are often shared with buyer's agents, the defining characteristic here is the guarantee of commission to the listing broker, regardless of who sells.
Exclusive Right-to-Sell Listing
A type of listing agreement that guarantees the listing broker a commission if the property sells during the listing period, regardless of who finds the buyer.
- Provides the most protection for the broker.
- Commission is earned even if the seller finds the buyer.
- Must be in writing and have a definite termination date.
Memory trick: Remember, the 'Exclusive Right' means the broker has the 'right' to the 'entire' commission.