Question 33

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

In an exclusive agency agreement, the owner retains the right to sell the property themselves while granting one broker the exclusive right to market the property. This means that only the selected broker and the owner can sell the property.

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

This option is incorrect as it contradicts the nature of an exclusive agency agreement. In such an agreement, only one specific broker has the right to sell the property, meaning that no other brokers are permitted to earn a commission.

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

This option is also incorrect because it misrepresents the terms of an exclusive agency agreement. In this type of agreement, the commission is not divided among multiple brokers; rather, only the designated broker is entitled to the commission if they sell the property.

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

This option is misleading as it implies that the owner is obligated to pay a commission in all scenarios. In an exclusive agency agreement, the owner would only owe a commission if the broker sells the property, but if the owner sells the property independently, no commission is owed.

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

This option accurately describes the exclusive agency agreement, where the owner can sell the property themselves while also granting exclusive rights to one broker. This structure delineates the selling rights clearly between the broker and the owner.

Conclusion

The correct answer, option D, correctly captures the essence of an exclusive agency agreement, where only the selected broker and the property owner have the right to sell the property. All other options fail to accurately represent the terms and conditions of such an agreement, leading to misunderstandings about the commission structure and selling rights.