National Real Estate Practice Exam

What is the key difference in commission structure between an Exclusive Agency Listing and an Exclusive Right to Sell Listing?

1. The broker receives payment only if they find a buyer

2. The owner pays a flat fee to the broker

3. The broker receives a commission regardless of who finds the buyer

4. Commissions are split among several brokers

The correct answer is: The broker receives payment only if they find a buyer

In an Exclusive Agency Listing, the seller retains the right to find a buyer themselves without incurring a commission payment to the broker if they are the one who successfully closes the sale. This is a crucial element of the agreement; the broker is entitled to a commission only if they bring the buyer. In contrast, with an Exclusive Right to Sell Listing, the situation is different. The broker receives a commission regardless of who finds the buyer. This means that even if the seller finds a buyer on their own, they are still obligated to pay the broker's commission. By understanding these distinctions, one can grasp the fundamental nature of the commission structure inherent to each listing type. The Exclusive Agency Listing allows for a more flexible approach for the seller, while the Exclusive Right to Sell Listing provides the broker with a secure guarantee of payment for their services.