California Real Estate Broker ExaminationContractsMedium
A real estate agent is preparing a listing agreement for a seller who wants to retain the right to sell the property themselves without owing a commission to the agent. However, if the agent successfully finds a buyer, the seller agrees to pay a commission. Which type of listing agreement best fits this scenario?
- AExclusive Right-to-Sell Listing
- BNet Listing
- CExclusive Agency Listing
- DOpen Listing
Show answer & explanationAnswer & explanation
Correct answer: C. Exclusive Agency Listing
An Exclusive Agency Listing grants one broker the exclusive right to sell the property, but the seller retains the right to sell it themselves without paying a commission. If any other broker or the listing broker sells the property, a commission is owed.
Why the other options are wrong
- A. Exclusive Right-to-Sell guarantees the broker a commission regardless of who sells the property.
- B. A Net Listing specifies a net price for the owner, and the broker's commission is anything above that price, which is generally disfavored and often illegal.
- D. An Open Listing allows multiple brokers and the owner to sell, with only the procuring cause earning a commission, but it's not exclusive to one broker.
Exclusive Agency Listing
A type of 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.
- Broker earns commission if they or another broker find a buyer.
- Seller avoids commission if they find the buyer directly.
- Must be in writing and have a definite termination date.
Memory trick: SOLE: Sellers Only List Exclusively.