Question 63

Only one broker and 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 designating only one broker to represent them. This structure allows the broker to earn a commission only if they facilitate the sale, while the owner can still sell independently without owing a commission to the broker.

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

This option is incorrect because an exclusive agency agreement restricts the selling rights to one designated broker. Under this arrangement, any other broker cannot sell the property and earn a commission, which contradicts the definition of exclusivity.

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, only one broker is appointed, and there is no division of commission among multiple brokers. Such a division implies a different type of agreement, typically seen in an open listing scenario.

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

This choice is incorrect as well, since in an exclusive agency agreement, the owner does not have to pay a commission if they sell the property themselves. The obligation to pay a commission arises only if the designated broker successfully sells the property.

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

This option is correct as it accurately describes the nature of an exclusive agency agreement. In this type of agreement, while a single broker is appointed to market the property, the owner retains the right to sell it independently, leading to a unique balance of exclusivity and owner autonomy.

Conclusion

The correct answer, D, encapsulates the key features of an exclusive agency agreement by emphasizing that only one broker is authorized to represent the seller while allowing the owner the right to sell the property independently. All other options misrepresent the terms of this agreement, highlighting their inaccuracy compared to the established definition.