Question 9

Only one broker or the owner has the right to sell the property

An exclusive agency agreement allows the property owner to retain the right to sell the property themselves while also granting one broker the exclusive right to represent them. This means that only the designated broker or the owner can complete the sale without incurring a commission obligation to others.

A) any broker can sell the property and earn a commission

This option is incorrect because an exclusive agency agreement specifically limits the right to sell to one broker and the property owner. This arrangement prevents multiple brokers from earning a commission simultaneously.

B) the commission is divided among several brokers even though one broker sold the property

This choice is also incorrect as it contradicts the nature of an exclusive agency agreement. Such agreements do not involve commission splitting among multiple brokers; instead, only one broker is entitled to the commission unless the owner sells the property themselves.

C) the owner must pay a commission regardless of who sells the property

This statement is inaccurate because, under an exclusive agency agreement, the owner is not obligated to pay a commission if they sell the property themselves. The commission is only due if the designated broker facilitates the sale.

D) only one broker or the owner has the right to sell the property

This option is correct as it accurately reflects the terms of an exclusive agency agreement, which grants the exclusive right to one broker while allowing the owner the option to sell without incurring a commission.

Conclusion

The correct answer is D, as it clearly defines the essence of an exclusive agency agreement, which limits the selling rights to one broker and the property owner. Options A, B, and C misrepresent the fundamental characteristics of such agreements, demonstrating why they do not meet the criteria outlined in the question.