Which of the following best describes an exclusive agency listing agreement?

As you prepare for your real estate license exam, understand that listing agreements establish the relationship between the real estate agent and the property seller. Remember that similar agreements may be used between a buyer and an agent when buyer representation is desired.

• Exclusive right to sell listing: In this agreement, the agent gets paid no matter who sells the property, regardless of whether it's the agent or the seller.

• Exclusive agency listing: Agents get paid in this type of agreement only if they sell the property. No fee is earned if the owner alone sells the property.

• Open listing: In this type of agreement, sellers have the right to use as many brokers as they want. However, the seller isn't obligated to pay any of them if he or she sells the property without the broker's help.

• Net listing: This type of agreement may be illegal in your state. The agent gets to keep everything he can get that's more than the sale price the owner wants.

Except where state law provides otherwise, the following terms shall be defined as follows when used in rules and regulations of any multiple listing service owned or operated by one or more associations of REALTORS®. (Amended 5/06)

Exclusive Right-to-Sell Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker, regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else; and a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else, except that the seller(s) may name one or more individuals or entities as exemptions in the listing agreement and if the property is sold to any exempted individual or entity, the seller(s) is not obligated to pay a commission to the listing broker. (Amended 5/06)

Exclusive Agency Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker. If the property is sold solely through the efforts of the seller(s), the seller(s) is not obligated to pay a commission to the listing broker. (Amended 5/06)

Open Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker only if the property is sold through the efforts of the listing broker. (Amended 5/06)

Note: These definitions are provided to facilitate categorization of listings in MLS compilations. In any area of conflict or inconsistency, state law or regulation takes precedence. If state law permits brokers to list property, on either an exclusive or open basis, without establishing an agency relationship, listings may not be excluded from MLS compilations on the basis that the listing broker is not the seller’s agent. (Adopted 11/93, Amended 5/06) M

Unlike an exclusive right of sale, the exclusive agency also exposes an agent to financial risk if they devote a lot of resources to selling a home and don`t end up getting paid for it. Selling your home is an important decision, and you shouldn`t tackle it alone. As you read above, you have several list options to choose from. In the case of an exclusive right of sale, a broker is designated as the sole representative of the seller and has the exclusive authorization to represent the property. The broker receives a commission no matter who sells the property while the listing agreement is in effect. Since almost all real estate transactions involve the same considerations, most listing contracts require similar information. This includes a description of the property (which should include lists of all personal items that remain with the property when it is sold and any furniture that is not included), a list price, the broker`s obligations, the seller`s obligations, the broker`s remuneration, the brokerage`s terms, a date of termination of the registration contract, and additional terms. You need to know how long your exclusive right to sell is contractual, because if you sell your own home (without the agent), you could still be held responsible for their commission. This is probably one of the most complicated offers available, as it could end badly for both the seller and broker. An exclusive listing is a real estate sales contract in which a particular real estate agent receives a commission when a property is sold within a certain number of months. In most cases, the agent earns the commission, regardless of how a buyer is found.

The purpose of an exclusive listing is to motivate the agent to sell the property quickly and at the highest possible price. A registration agreement authorizes the broker to represent the principal and the principal`s assets to third parties, including securing and submitting bids for the property. Under the terms of real estate licensing laws, a single broker can act as an agent to register, sell, or lease another person`s properties, and in most states, listing agreements must be in writing. If an owner has signed an exclusive listing agreement with an agent and the owner has also placed an listing for the property, the agent can still earn a commission even if the buyer responds to the listing. You will probably have a hard time convincing an agent to accept this type of registration because they work on the commission. Real estate agents generally prefer exclusive offers to open offers, which only pay about half the usual commission rate. Open offers put real estate agents in competition with each other to attract buyers, but with no guarantee that agents will earn a commission. The buyer could negotiate their own agreement with the buyers and eliminate the agents altogether. Open offers offer the greatest benefit to the home buyer. Unlike an exclusive right to sell an offer, an open listing allows the owner to place listings with multiple real estate agents. Net offers allow a real estate agent to hold the difference between what the owner wants to sell the home and the actual sale price.

Death, bankruptcy or insanity may and will terminate a registration contract. An exclusive listing is when an owner or seller selects only one agent to list their property (or properties). An open listing occurs when an owner or seller has given permission to more than one broker to advertise a property. One of the most popular options is the exclusive right to sell the offer. It is essentially an agreement between a seller and a real estate agent or real estate agent that gives them exclusive rights to sell and market your home. You probably won`t see much of this list because it`s illegal in several states, and even in states where it`s legal, there are a lot of restrictions. A non-exclusive listing agreement means that your listing will be published in the MLS system and other agents will have the opportunity to bring potential buyers to your home. The advantage of this type of arrangement is the exposure of your home. In a contract of exclusive sales rights, the seller is responsible for paying the brokerage fees, even if he finds the buyer completely alone. .