A California broker wants to list a residential property for sale and submit it to the local Multiple Listing Service. Which type of listing agreement is MOST commonly required by MLS organizations for submission?
Correct Answer
D) Exclusive right to sell listing, which pays the broker on any sale during the term
A multiple listing service accepts the listing form that lets the broker commit to it. An exclusive right to sell pays the listing broker on a sale during the term no matter who produces the buyer, so the broker can market the property fully and can make the unilateral offer of cooperation to other participants that the service runs on, without the seller reserving the right to sell around the broker. An exclusive agency listing leaves exactly that gap, an open listing gives the broker no exclusivity at all, and a net listing describes how the broker is paid rather than who may sell. Compensation to a cooperating broker is now negotiated outside the multiple listing service rather than published in it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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