Which type of agreement represents a seller but does not guarantee commission to the broker?

Which type of agreement represents a seller but does not guarantee commission to the broker?

• A. Exclusive Right to Sell
• B. Open Listing
• C. Exclusive Agency
• D. Net Listing

Answer: (C)

The agreement that represents a seller but does not guarantee commission to the broker is the Exclusive Agency agreement. In this arrangement, the broker has the exclusive right to market the property, but the seller retains the right to sell the property independently. If the seller finds a buyer without any assistance from the broker, the broker does not receive a commission. This differentiates Exclusive Agency from the Exclusive Right to Sell agreement, where the broker is guaranteed a commission regardless of how the buyer is found. The other types of listings, such as Open Listings and Net Listings, have different characteristics that establish how commissions are handled, but it is the Exclusive Agency that specifically allows the seller to bypass broker involvement and potentially avoid paying a commission if they complete the sale themselves. Thus, understanding the nuances of these agreements is crucial in real estate transactions as it affects both the seller's obligations and the broker's compensation.

The agreement that represents a seller but does not guarantee commission to the broker is the Exclusive Agency agreement. In this arrangement, the broker has the exclusive right to market the property, but the seller retains the right to sell the property independently. If the seller finds a buyer without any assistance from the broker, the broker does not receive a commission. This differentiates Exclusive Agency from the Exclusive Right to Sell agreement, where the broker is guaranteed a commission regardless of how the buyer is found.

The other types of listings, such as Open Listings and Net Listings, have different characteristics that establish how commissions are handled, but it is the Exclusive Agency that specifically allows the seller to bypass broker involvement and potentially avoid paying a commission if they complete the sale themselves. Thus, understanding the nuances of these agreements is crucial in real estate transactions as it affects both the seller's obligations and the broker's compensation.