63. A client wants to give a broker a listing to sell a house, but wants to retain the right to sell it to a sibling without paying a commission. What is the broker's most appropriate course of action?
Answer: C
The broker should have the buyer execute an exclusive right-to-sell listing.
An exclusive right-to-sell listing ensures that the broker is entitled to a commission if the property is sold, regardless of who sells it, including the owner or a family member. This arrangement protects the broker's interests while allowing the client to retain the right to sell to a sibling without incurring additional costs.
A) The broker should wait and let the buyer deal with the sibling
This option is incorrect because it does not provide a formal agreement or protection for the broker. By waiting, the broker risks losing potential commission and does not address the client's desire to exclude a sibling from commission obligations.
B) then take the listing if they cannot agree to terms.
This choice is not appropriate as it suggests a passive approach. The broker should not wait for the client to negotiate terms but should instead propose a clear, binding agreement that meets the client's needs while also securing the broker's commission rights.
C) The broker should have the buyer execute an exclusive right-to-sell listing.
This is the correct answer because an exclusive right-to-sell listing guarantees the broker a commission on the sale, regardless of who ultimately sells the property. It allows the client to sell to a sibling without incurring a commission as long as the terms are clearly outlined in the listing agreement.
D) The broker should have the buyer execute an exclusive agency listing.
This option is incorrect because an exclusive agency listing allows the owner to sell the property themselves without owing a commission to the broker. This would not meet the client's need to retain the right to sell to a sibling while ensuring the broker is compensated.
E) The broker should have the buyer execute an open listing.
An open listing allows multiple brokers to market the property and only pays a commission to the broker who brings a buyer. This does not provide the necessary protection or commitment for the broker, making it an unsuitable choice for the situation described.
Conclusion
The exclusive right-to-sell listing is the most effective arrangement for the broker, as it secures a commission while accommodating the client's specific request regarding sibling sales. Other options either leave the broker unprotected or do not fulfill the client's requirements effectively, thereby failing to create a beneficial agreement for both parties.