32. Sam is the listing agent for a single-family home. He knows that he will earn compensation if he procures the buyer for the home, but he will not earn compensation if another broker OR the owner procures the buyer. What type of listing agreement does Sam have?
Answer: A
Sam has an exclusive agency listing agreement.
An exclusive agency listing agreement allows the listing agent to earn a commission if they procure the buyer, while the owner retains the right to sell the property themselves without owing a commission to the agent.
A) exclusive agency listing
This option is correct because it accurately describes the arrangement where the listing agent earns a commission only if they are the one who finds the buyer, thus aligning with Sam's situation. The owner is permitted to find a buyer independently without incurring a fee to the agent.
B) net listing
This option is incorrect as a net listing guarantees the seller a specified amount from the sale, with the agent keeping any excess as commission. It does not align with the scenario where the agent does not earn a commission if another broker or the owner finds a buyer.
C) open listing
This option is also incorrect because an open listing allows multiple agents to market the property, and the seller only pays commission to the agent who successfully brings a buyer. In this case, Sam's compensation is conditional on him being the procuring cause, which differs from an open listing.
D) exclusive authorization and right-to-sell listing
This option is incorrect as it provides the listing agent with the exclusive right to earn a commission regardless of who finds the buyer, including the owner. This contradicts the specifics of Sam’s arrangement where he does not earn compensation if the owner or another broker procures the buyer.
Conclusion
The exclusive agency listing is clearly the correct answer as it matches Sam's conditions for earning a commission. Other options, including net listings and exclusive right-to-sell listings, do not reflect the stipulation that Sam will not receive payment if the buyer is found by someone other than himself. Thus, the exclusive agency listing is the only agreement that accurately captures the nuances of Sam's situation.