National Real Estate Practice Exam

What must be included in an exclusive right to sell listing agreement?

1. Multiple agents can represent the seller

2. The broker receives a commission regardless of who sells

3. The homeowner must pay fees up front

4. The listing must be published in major newspapers

The correct answer is: The broker receives a commission regardless of who sells

In an exclusive right to sell listing agreement, it is essential that the broker is guaranteed a commission regardless of who ultimately sells the property. This type of agreement gives the listing broker exclusive rights to represent the seller in real estate transactions; thus, if the property is sold during the term of the listing, the broker earns a commission, even if the buyer is found by another agent or the seller themselves. The structural design of this agreement incentivizes brokers to market the property vigorously, knowing their efforts will be financially rewarded irrespective of which party closes the sale. While there are other options present that may relate to real estate listings, they do not represent the fundamental aspects of an exclusive right to sell agreement. For instance, multiple agents being able to represent the seller would contradict the exclusivity of this type of agreement. Additionally, the requirement for up-front fees or publication in newspapers are not standard components of such agreements and can vary by local contracts and practices, rather than being a universal necessity.