Question 35

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

An exclusive agency agreement allows the owner to retain the right to sell the property themselves while granting only one broker the right to represent them and earn a commission if another party sells the property.

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

This option is incorrect because an exclusive agency agreement limits the rights to one broker. In this type of agreement, not just any broker can sell the property; only the appointed broker has the authority to represent the owner.

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

This statement is also incorrect. In an exclusive agency agreement, the commission is not divided among multiple brokers. Instead, only the designated broker is entitled to a commission unless the owner sells the property themselves.

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

This option misrepresents the nature of an exclusive agency agreement. The owner is only obligated to pay a commission to the broker if the broker sells the property or if the owner sells it while the agreement is in effect without the broker's involvement.

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

This option accurately describes the terms of an exclusive agency agreement. The owner retains the right to sell the property independently while granting exclusive rights to one broker. This arrangement prevents multiple brokers from claiming a commission.

Conclusion

The correct answer is D, as it succinctly encapsulates the essential characteristic of an exclusive agency agreement, where only one broker has the right to sell the property alongside the owner. Options A, B, and C incorrectly describe the commission structures and rights involved in such agreements, thus confirming that D is the definitive and correct choice.