In an Exclusive Agency listing, which is true?

In an Exclusive Agency listing, which is true?

• A. Only one broker is allowed to act on behalf of the principal, but if the owner sells the property himself, no commission; if the broker sells, he will be entitled to a commission; unilateral contract.
• B. The broker is guaranteed a commission regardless of who procures the buyer; bilateral contract.
• C. The owner pays no commission if the owner procures the buyer.
• D. The listing must be in writing.

Answer: (A)

Exclusive Agency listing designates one broker as the agent, but the owner keeps the right to sell the property themselves without owing a commission. The broker only earns a commission if he is the procuring cause of a sale. This setup matches the statement that only one broker is authorized to act for the owner, and the owner pays nothing if they sell it themselves, while the broker earns a commission if he brings the buyer. In practice, the arrangement is based on promises: the owner promises to pay a commission if the broker procures a buyer, and the broker promises to use reasonable efforts to find one. The other options don’t fit because they either guarantee the broker a commission regardless of who procures the buyer, omit the owner’s right to sell without paying, or state a universal writing requirement that isn’t specific to the defining feature of an exclusive agency listing.

Exclusive Agency listing designates one broker as the agent, but the owner keeps the right to sell the property themselves without owing a commission. The broker only earns a commission if he is the procuring cause of a sale. This setup matches the statement that only one broker is authorized to act for the owner, and the owner pays nothing if they sell it themselves, while the broker earns a commission if he brings the buyer. In practice, the arrangement is based on promises: the owner promises to pay a commission if the broker procures a buyer, and the broker promises to use reasonable efforts to find one. The other options don’t fit because they either guarantee the broker a commission regardless of who procures the buyer, omit the owner’s right to sell without paying, or state a universal writing requirement that isn’t specific to the defining feature of an exclusive agency listing.