National Real Estate Practice Exam

What happens to the commission if a seller finds their own buyer with an Exclusive Agency Listing?

1. The seller pays a reduced commission

2. No commission is owed to the broker

3. The broker charges a flat fee

4. The full commission is still paid

The correct answer is: No commission is owed to the broker

When a seller has an Exclusive Agency Listing, they retain the right to find a buyer themselves without owing a commission to the broker. This type of listing agreement allows the seller to have control over the sale process while still benefiting from the services of the broker. If the seller successfully locates a buyer independently, there is no commission that needs to be paid to the broker since the payment obligation is typically contingent upon the broker bringing in a buyer. This arrangement is specifically designed to incentivize sellers who wish to have the option of going solo in their search for buyers while still having the backing of a brokerage. In contrast, other options do not align with the structure of an Exclusive Agency Listing. The notion of a reduced commission or a flat fee typically applies to different types of agreements or scenarios, and the full commission payment would generally apply only if the broker is the one to procure the buyer.