6. A newly licensed salesperson has negotiated with an experienced homebuilder to list a number of houses. The builder insisted that as a term of the listing agreement the builder would be allowed the right to personally sell the houses without paying a commission. This type of listing agreement is known as
Answer: C
Exclusive agency
An exclusive agency listing agreement allows the seller, in this case, the homebuilder, to sell the property themselves without paying a commission to the agent. This arrangement is beneficial for sellers who may want to retain the ability to sell their property independently while still having the agent market it.
A) exclusive right-to-sell
An exclusive right-to-sell listing grants the agent full rights to sell the property, and the seller must pay a commission regardless of who sells the home. This option does not match the scenario, as the builder would not be allowed to sell without a commission under this type of agreement.
B) general
A general listing does not specify exclusivity and allows the seller to work with multiple agents. This type of agreement does not provide the specific rights outlined in the scenario, where the builder retains the right to sell without paying a commission.
C) exclusive agency
An exclusive agency listing permits the builder to sell the homes personally without incurring a commission fee to the agent, which aligns perfectly with the conditions set forth in the scenario. This arrangement allows the builder to have the benefit of agent services while still having the option to sell independently.
D) open listing
An open listing allows the seller to list the property with multiple agents without any exclusivity, and only the agent who sells the property receives a commission. While it provides flexibility, it does not fit the context of the builder being allowed to sell without paying a commission, as it lacks a formal agreement structure.
Conclusion
The correct answer is "exclusive agency" because it specifically allows the builder to sell the houses without incurring a commission, which is a key aspect of the listing arrangement described. All other options either require the payment of a commission under certain conditions or do not provide the exclusive selling rights that the builder desires.