38. Under which of the listing agreements below is a listing agent promised a commission if the property is sold (by anyone)?
Answer: D
Exclusive authorization and right-to-sell listing agreement
An exclusive authorization and right-to-sell listing agreement guarantees that the listing agent receives a commission if the property is sold, regardless of who sells it. This type of agreement provides the agent with a stronger assurance of compensation for their marketing and sales efforts.
A) open listing agreement
An open listing agreement does not guarantee a commission to the listing agent if the property is sold by someone else, including the owner. In this type of agreement, multiple agents can be involved, and only the agent who brings a buyer receives a commission, making it less secure for the listing agent.
B) net listing agreement
A net listing agreement allows the seller to set a minimum price for their property, with the agent keeping any amount above that as commission. While the agent can earn a commission, this arrangement often leads to conflicts of interest and does not inherently promise a commission if sold by someone other than the agent.
C) exclusive agency listing agreement
An exclusive agency listing agreement allows the seller to sell the property themselves without paying a commission to the agent if they find a buyer. This means the agent only earns a commission if they are the one who brings the buyer, which does not provide the same assurance as an exclusive authorization and right-to-sell listing agreement.
D) exclusive authorization and right-to-sell listing agreement
This agreement ensures that the listing agent is entitled to a commission no matter who sells the property. It provides the strongest protection for the agent, as they are guaranteed payment for their services, making it the correct answer for the question posed.
Conclusion
The exclusive authorization and right-to-sell listing agreement is the definitive choice as it guarantees commission to the listing agent regardless of who sells the property, thereby ensuring their compensation for marketing and effort. In contrast, the other options either allow for the possibility of no commission or limit the agent's entitlement based on who sells the property.