What type of listing agreement allowed the broker to receive a commission even if the seller sold the property independently?

Enhance your readiness for the National PSI Broker Exam with our quiz. Dive into flashcards and multiple choice questions, complete with hints and detailed explanations. Start preparing for success!

The exclusive right to sell listing agreement is the correct choice because it grants the broker the sole right to earn a commission regardless of how the sale occurs. This means that even if the seller finds a buyer without the broker's assistance, the broker is still entitled to receive the commission. This type of agreement is highly advantageous for brokers, as it ensures their compensation for marketing the property and providing their services.

In this scenario, the exclusive right to sell agreement solidifies the broker's role and responsibility throughout the selling process, giving them a strong incentive to actively promote the property. This builds a significant commitment from the broker to market and negotiate the sale effectively.

Other types of agreements, such as open listings or exclusive agency listings, do not provide this same level of protection for the broker. In an open listing, the seller can work with multiple brokers and only pays a commission to the one who brings in a buyer. Exclusive agency agreements allow the seller to sell the property independently without owing a commission to the broker if they do, which does not guarantee the broker any payment if the seller finds a buyer on their own. A listing with a "seller may not sell" contingency is not standard and would typically imply that the seller has relinquished the right to sell

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy