A listing agreement guaranteeing the broker commission regardless of who finds the buyer, including the seller.
Why Exclusive Right to Sell Listing matters on the exam
This term belongs to Contracts. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Exclusive Right to Sell Listing
Every Freehold question shows why the right answer is right — and cites its source.
Which type of listing agreement entitles the broker to a commission regardless of who ultimately finds the buyer, including the seller?
Open listing offered to several brokers
Exclusive agency listing with one broker
Net listing keyed to a minimum seller price
Exclusive right to sell listing
Show answer & explanation
Exclusive right to sell listing — An exclusive right to sell listing guarantees the broker a commission if the property sells during the listing term no matter who procures the buyer, even the seller.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
A seller signs an exclusive agency listing with Broker A. During the listing term, the seller personally finds a buyer without any assistance from Broker A and sells directly to that buyer. Under this type of listing, does the seller owe Broker A a commission?
No, because under an exclusive agency listing the seller retains the right to sell without paying commission if the seller alone procures the buyer
Yes, because an exclusive listing entitles the broker to a commission on any sale that closes during the listing term, regardless of who found the buyer
Yes, but only half the commission, since the seller performed part of the procuring effort themselves
No, because an exclusive agency listing never entitles a broker to any commission whatsoever
Show answer & explanation
No, because under an exclusive agency listing the seller retains the right to sell without paying commission if the seller alone procures the buyer — An exclusive agency listing prevents the seller from hiring another broker, but the seller retains the right to sell the property personally without owing a commission, unlike an exclusive right to sell listing.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
A net listing, in which the broker keeps any amount received above a minimum price the seller specifies, is generally viewed by regulators as:
The listing type new licensees are generally taught and encouraged to use first, before more advanced arrangements are introduced later in their training
Risky and illegal or discouraged in most states because of potential conflicts of interest
A listing arrangement specifically required under the statute of frauds in most of the US states
Identical in every respect to a standard exclusive right to sell listing agreement
Show answer & explanation
Risky and illegal or discouraged in most states because of potential conflicts of interest — Net listings create an incentive for the broker to withhold information about a property's true market value to maximize personal profit, so many states prohibit or strongly discourage them.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
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