Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate sales associate is preparing a listing agreement for a property owner. The property owner wants to retain the right to sell the property themselves without owing a commission to the broker. Which type of listing agreement should the sales associate recommend?
- ANet Listing
- BExclusive Agency Listing
- CExclusive Right of Sale Listing
- DOpen Listing
Show answer & explanationAnswer & explanation
Correct answer: B. Exclusive Agency Listing
An Exclusive Agency Listing allows the seller to retain the right to sell the property themselves and avoid paying a commission to the broker. If any other broker sells the property, the listing broker would be entitled to a commission.
Why the other options are wrong
- A. A Net Listing specifies a net price to the seller, with the broker's commission being any amount over that price, which is illegal in Florida.
- C. This type of listing guarantees the broker a commission regardless of who sells the property.
- D. An Open Listing allows multiple brokers to sell the property, and only the broker who procures the buyer gets a commission; the owner can also sell without owing a commission, but it's less common for a sales associate to 'recommend' it over an exclusive agency in this scenario.
Exclusive Agency Listing
A listing agreement where the seller grants exclusive rights to a broker to sell their property, but retains the right to sell it themselves without paying a commission.
- Broker earns commission if *any* broker sells the property.
- Seller does *not* owe commission if they sell the property themselves.
- Provides some exclusivity to the broker while offering seller flexibility.
Memory trick: Every Listing Offers an Exclusive Net deal.