In which type of listing agreement does a broker receive compensation regardless of who sells the property?

Prepare for the Colibri Real Estate Exam. Study with flashcards and multiple-choice questions, each with detailed hints and explanations. Get ready for your exam!

The Exclusive Right to Sell listing agreement is the correct choice because it guarantees that the broker will receive a commission regardless of who sells the property. This type of agreement means that the seller has given the broker exclusive rights to sell the property, ensuring that even if the owner finds a buyer on their own, the broker is still entitled to their commission.

This arrangement incentivizes the broker to market the property vigorously, as they will be compensated for their efforts irrespective of how the sale is ultimately executed. The assurance of a commission from the seller fosters a strong commitment to achieve the best sale price and conditions.

In contrast, other types of agreements, such as Exclusive Agency and Open Listings, allow for the possibility that the owner can sell the property themselves without owing a commission to the broker. A Net Listing generally involves the broker receiving any excess over a predetermined sale price, which can introduce complexities regarding commission structures but does not ensure compensation irrespective of who sells.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy