64. Thomas signed a listing agreement with a seller. Thomas is the only broker who can earn compensation by finding a buyer for the property, but if the seller finds the buyer, he won't earn any compensation. What type of agreement did they sign?
Answer: C
Exclusive agency listing agreement
An exclusive agency listing agreement allows a broker to earn a commission only if they find a buyer for the property. However, if the seller finds a buyer independently, the broker does not receive any compensation.
A) net listing agreement
A net listing agreement is structured so that the seller receives a predetermined amount from the sale, and any amount above that is kept by the broker as commission. This type of agreement does not align with the conditions described in the question, as it does not stipulate that the seller can find a buyer without compensating the broker.
B) open listing agreement
An open listing agreement permits the seller to work with multiple brokers and allows them to sell the property themselves without any obligation to pay a commission to the broker if they find a buyer. This is different from the exclusive agency listing agreement, where only one broker has the right to earn a commission under certain conditions.
C) exclusive agency listing agreement
This type of agreement is accurately described in the question. It grants the broker exclusive rights to earn a commission if they find a buyer, but the seller retains the right to sell the property on their own without paying the broker's commission, which is precisely what Thomas and the seller have established.
D) exclusive right-to-sell listing agreement
An exclusive right-to-sell listing agreement gives the broker the right to earn a commission regardless of who finds the buyer, including the seller. This contradicts the scenario presented, where the seller can find a buyer without compensating Thomas.
Conclusion
The exclusive agency listing agreement is the correct answer as it specifically allows the broker to earn a commission only if they facilitate the sale, while giving the seller the freedom to find a buyer independently without incurring a fee. Other options either misrepresent the terms of compensation or do not align with the exclusivity described in the question.