Question 52

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

In an exclusive agency agreement, the seller retains the right to sell the property themselves while also granting one broker the exclusive right to represent them. This structure allows the owner to avoid paying a commission if they successfully sell the property without broker assistance.

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

This option inaccurately describes the nature of an exclusive agency agreement. In such an agreement, only one broker is authorized to represent the seller, which means that not "any broker" can sell the property and earn a commission.

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

This statement does not reflect the exclusive nature of the agreement. An exclusive agency agreement is designed to prevent the division of commissions among multiple brokers, as only one broker is involved in the transaction.

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

This option misrepresents the terms of an exclusive agency agreement. In this type of agreement, the owner is not obligated to pay a commission if they sell the property themselves, which is a key distinction from exclusive right-to-sell agreements.

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

This option correctly identifies the core principle of an exclusive agency agreement. This agreement allows the owner to sell the property independently while still granting a single broker the right to represent them, ensuring clarity in commission obligations.

Conclusion

Option D is definitively correct as it accurately captures the primary characteristic of an exclusive agency agreement, where either the owner or the designated broker can sell the property. The other options fail to reflect the exclusivity and specific commission structure inherent in such agreements, making them incorrect.