In a listing agreement, what does the term 'exclusive right to sell' mean for the listing brokerage?
Correct Answer
A) The brokerage earns commission no matter who sells during the listing period
An exclusive right to sell listing grants the brokerage the right to commission even if the seller finds a buyer independently or another agent facilitates the sale. This provides the highest level of protection for the listing brokerage's investment in marketing the property.
Why This Is the Correct Answer
Option A correctly identifies that under an exclusive right to sell listing, the brokerage earns commission regardless of who sells the property during the listing period. This is the defining characteristic of this listing type under Canadian real estate law. Whether the listing agent finds the buyer, another brokerage brings a buyer, or the seller independently locates a purchaser, the listing brokerage is entitled to the agreed-upon commission. This protection is established in provincial real estate legislation and standard form agreements across Canada.
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A buyer's offer has a home inspection condition (7 days) and a financing condition (10 days) requiring a mortgage satisfactory to the buyer in the buyer's sole discretion; unless the buyer gives written notice by day 10 that financing is arranged, the agreement is void. The inspection finds major issues, but the buyer waives the inspection condition on day 6. On day 9 the lender approves the mortgage only if repairs are finished before closing. What is the buyer's position?
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In a listing agreement, what does the term 'holdover clause' typically provide?