31. Marc is the listing agent for a two-story home. He will earn compensation if any broker, or he himself, procures the buyer. He will NOT earn compensation if the owner brings the buyer. What is this an example of?
Answer: A
This is an example of an exclusive agency listing.
In an exclusive agency listing, the listing agent earns a commission if a broker or the agent themselves procures the buyer, but does not earn a commission if the owner directly brings the buyer. This arrangement describes Marc's situation accurately.
A) exclusive right-to-sell listing
An exclusive right-to-sell listing guarantees the listing agent a commission regardless of who brings the buyer, including the owner. This is not applicable here, as Marc does not earn compensation if the owner finds the buyer.
B) net listing
A net listing involves the seller specifying a minimum amount they wish to receive from the sale, with the agent keeping any amount above that as commission. This is unrelated to the specifics of Marc's situation and does not describe the commission structure outlined.
C) exclusive agency listing
An exclusive agency listing allows the agent to earn a commission if they or another broker secures the buyer, but not if the owner finds the buyer independently. This is the correct definition that matches Marc's compensation scenario.
D) open listing
An open listing is a non-exclusive agreement where multiple agents can work to find a buyer, and only the agent who brings the buyer earns the commission. While it allows for flexibility, it does not fit the specific compensation stipulation described for Marc.
Conclusion
The correct answer is exclusive agency listing, as it accurately reflects the conditions under which Marc will earn compensation. All other options either guarantee payment regardless of who finds the buyer or do not align with the specific terms of Marc's arrangement. This distinction is crucial in understanding the nuances of real estate listing agreements.