Texas Real Estate Sales Agent ExamAgencyMedium
A seller engages a real estate broker under an exclusive right-to-sell listing agreement. During the listing period, the seller finds a buyer through their own efforts, without any involvement from the broker or their agents. What is the broker entitled to in this situation?
- AA full commission, as per the exclusive right-to-sell agreement.
- BA reduced commission, negotiated with the seller.
- CNo commission, as the broker did not procure the buyer.
- DReimbursement for marketing expenses only.
Show answer & explanationAnswer & explanation
Correct answer: A. A full commission, as per the exclusive right-to-sell agreement.
An exclusive right-to-sell listing agreement entitles the broker to a commission regardless of who procures the buyer, even if the seller finds the buyer independently. This type of agreement offers the broker the most protection.
Why the other options are wrong
- B. While negotiation is always possible, the agreement legally entitles the broker to the full commission.
- C. This would be true for an 'exclusive agency' or 'open listing' agreement, but not 'exclusive right-to-sell'.
- D. Reimbursement for expenses is not equivalent to the commission earned under this type of agreement.
Exclusive Right-to-Sell Listing
A listing agreement that grants the broker the exclusive right to sell the property and earn a commission, regardless of who procures the buyer, even if it's the seller.
- Most common and preferred listing agreement for brokers.
- Guarantees commission if property sells during listing term.
- Seller cannot avoid paying commission by finding own buyer.
Memory trick: Listings are like contracts: Open, Exclusive Agency, or Exclusive Right.