Maine Real Estate License Practice Exam

What type of listing agreement does Janet have if she is compensated only when the listing company sells the property?

1. Exclusive Right to Sell

2. Open

3. Buyer Brokerage

4. Exclusive Agency

The correct answer is: Exclusive Agency

Janet's situation describes an Exclusive Agency listing agreement. In this arrangement, the listing company is granted the exclusive right to market the property, but the owner retains the right to sell the property independently without paying a commission to the listing agent if they find the buyer themselves. Thus, the agent is compensated only if they are the one who brings the buyer to the transaction. In contrast, an Exclusive Right to Sell agreement guarantees that the agent will receive a commission regardless of how the buyer is found, whether through the agent's efforts or directly by the owner. This means the owner cannot sell the property privately without incurring a fee to the agent. The Open listing is a non-exclusive arrangement where the property can be marketed by multiple agents, and only the agent who sells it will earn a commission; in this case, the owner can sell without owing a fee to any agent involved. Buyer Brokerage refers specifically to an agreement where a real estate agent represents the buyer in a transaction. In this context, it does not pertain to the listing of a property for sale, which is what Janet is involved in. Therefore, the description of Janet's compensation aligns perfectly with the terms of an Exclusive Agency listing agreement.