63. A seller has entered into an exclusive agency agreement IF:
Answer: D
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 independently, while designating only one broker to represent them. This arrangement allows the owner to avoid paying a commission if they successfully sell the property themselves.
A) Any broker can sell the property and earn a commission
This option is incorrect as it describes a situation typical of an open listing rather than an exclusive agency agreement. In an exclusive agency agreement, only one broker has the exclusive right to market the property, while the owner can also sell it without incurring a commission.
B) The commission is divided among several brokers even though one broker sold the property
This choice is misleading, as an exclusive agency agreement involves a single broker. The commission structure outlined in this option suggests multiple brokers are involved, which contradicts the nature of an exclusive agency agreement that limits representation to one broker.
C) The owner must pay a commission regardless of who sells the property
This statement is incorrect because, in an exclusive agency agreement, the owner is not obligated to pay a commission if they sell the property themselves. The agreement specifically allows the owner to retain that right without incurring commission fees.
D) Only one broker and the owner has the right to sell the property
This option accurately reflects the nature of an exclusive agency agreement. It specifies that there is only one broker representing the owner while also allowing the owner to sell the property independently without a commission obligation.
Conclusion
The correct answer, D, accurately encapsulates the fundamental characteristics of an exclusive agency agreement, where only one broker is authorized to represent the owner, yet the owner retains the right to sell the property independently. Options A, B, and C misrepresent the terms of an exclusive agency agreement, highlighting why they do not fit the definition.